Your version of Internet Explorer is no longer supported and may not display all the features of our website. For the best experience, please update your browser with the latest version. When you buy a call , you have the right to purchase the underlying instrument at the strike price before the expiration date.
Buying a put gives you the right to sell the underlying instrument at the strike price before the expiration date. Bullish investors tend to purchase calls, while bearish investors tend to buy puts. Alternatively, if you believe the stock's value will decline, you might purchase a put. Again, subtract the cost of the option from any profit you make.
As the option buyer, you control the ability to exercise the contract. However, the stock might not always move in the way that you expect. Should the price move in the opposite direction, you can do nothing and let the option expire worthless, or you may sell it to prior to expiration to recover part of your purchase price.
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Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees. Market volatility, volume and system availability may impact account access and trade execution.
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We are consistently making improvements to the accessibility of our site. If you are having difficulty accessing an area of the site, please contact us at accessibility scottrade. Search Keywords or Symbol. Open A New Account. Regulatory Trading Suspensions Trading Halts: Buying Options When you buy a call , you have the right to purchase the underlying instrument at the strike price before the expiration date.
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