can somebody explain the puts and calls? i started wit stocks a while ago but the options was something i was always interested in. i know with the kinda market we're in you have to get in and get out to make ya money. that long term stuff not working well right now. somebody school me
Puts = You think the stock will go down and that's what you're investing in. It's called a "Put" because of the phrase you're going to 'put' something down. Hence the stock going down.
Calls = You think the stock will go up and you invest in it going up. It's called a "Call" because of the phrase you're going to 'call' someone up. Hence the stock going up.
So if you believe a stock is going to go up then you would want to buy calls for it. If you think the stock is going to go down, you buy puts.