By Matthew Kerkhoff
Last month we introduced a new series on options. The goal of this series is to provide a basic overview on how options can be used to help protect and manage a portfolio.
In the first article we discussed exactly what calls and puts are, and went over some of the vocabulary associated with options. If you missed it, click here to read that article first.
Today we’re going to explore calls and puts in more detail, and walk through examples of buying and selling a call option. The goal here is to provide a blueprint of how call and put options work, before we begin to apply them to specific strategies.