Buying Calls vs. Buying Puts: Strategies and experiences

Question

Understanding the meaning: Buy a call: Call options are financial contracts that give the option buyer the right but not the obligation to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period. A call buyer profits when the underlying asset increases in price. Learn more here. Buy a put: A put option may be contrasted with a call option. It gives the holder the right to sell the underlying asset at a specified price on or before expiration. Learn more here.Generally, the value of calls and its underlying stock move in the same direction, while the value of puts and its underlying stock move in the opposite direction. Please note, this is a simplified explanation as there are numerous other factors that can affect options pricing, such as implied volatility, time to expiration, etc. If you're bullish, you may consider buying calls, and if you're bearish, you may consider buying puts.We are wondering:Have you traded calls or puts before? When do you typically buy a call option versus a put option? What are the pros and cons of each approach? What do you look for when selecting a strike price and expiration date for your options?Share your experiences with us and learn from others about the long call and long put option strategies.Reward: Top 10 excellent posts will get 800 points (based on quality and total likes). All posts with more than 20 words will get 28 points.Time: Through August 22, 2023Note: Please avoid specific details of setting up an options trade (e.g. picking the underlying, expiration date, and strike prices). Please keep it more high level and a discussion of options concepts. The focus should be on education and not advice. Important: Options trading is very risky and is not appropriate for all customers. Read the Characteristics and Risks of Standardized Options before considering trading options. Please check the disclaimer here.

Accepted Answer

I hope everyone is trading well. The market is wild, huh. PPI comes out an hour before open.  The market has done NOTHING spectacular. I said expect a 5- 10% pullback, meandering down, before resuming up.  Here is my post from July 20: Understand that. We are not on the Titanic. We are still in a bull market. It's probably not the kind of market someone wants to trade in unless you find and play the individual stocks.   I think we bounce around up at these prices. Before dropping...

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Michael Burry trades about a little over $100 Million for his fund, but buys over $1,500,000,000 in put options on the SPY and QQQ? He smells a sequel coming...Big Short 2 - The Great Stock Market Crash!
Added Puts of $890M of $SPY
Added Puts of $740M of $QQQ

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$SPDR S&P 500 ETF(SPY.US)$$Invesco QQQ Trust(QQQ.US)$ You know all those Friday call buyers are gonna be like this tonight: [Facepalm][Facepalm][Facepalm] $SPDR S&P 500 ETF(SPY.US)$$Invesco QQQ Trust(QQQ.US)$

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I'm really new at this but I have some questions.  if any one is willing to help me . what is calls and put options , an also warrants an ETFs. any info will be really helpful an Appreciated

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When will I buy call or put options?
1) Stock market is very bullish:
I'll buy a call option to profit from premium - buy low sell high. I may exercise my call options to buy 100 shares if it is in the money (ITM) because share price is above the strike price.
2) Stock market is very bearish:
I'll buy a put option to profit from premium - buy low sell high. I may exercise my put options to sell 100 shares (are curr...

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Buy call = Sell put => bullish
Buy put = Sell call => bearish
So which will I pick if I am bullish or bearish?
Personally I like the idea of getting paid a premium while waiting to buy a stock (sell put) or sell a stock (sell call) when assigned, hence the appeal of selling rather than buying options.
Buying a stock via buy call
1. If a stock has risen far too high outside the price I am prepared to pay, I may contemplate doing a leap call with longer date to expiry so as...

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Protective puts are extremely helpful to protect positions.

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I Like the Call if I get up comforting  , but if not  Then I'll   do puts . as kanna Says  wait  for  confirmation  is the  best  way  .

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