Here's what I have from my notes of studying options.
A call option is the right to buy 100 shares at the option strike price. (Bullish)
A put option is the right to sell 100 shares at the option strike price. (Bearish)
Strike price is known as a fixed price where a buyer could purchase or sell an option.
Naked call - Selling a call option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bearish)
You want the price to stay below the strike price that you've sold.
Naked put - Selling a put option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bullish)
You want the price to stay above the strike price that you've sold.
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Basics
in Options Basics
Posted
Here's what I have from my notes of studying options.
A call option is the right to buy 100 shares at the option strike price. (Bullish)
A put option is the right to sell 100 shares at the option strike price. (Bearish)
Strike price is known as a fixed price where a buyer could purchase or sell an option.
Naked call - Selling a call option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bearish)
Naked put - Selling a put option to collect the premium of a stock. This is known to be very risky at times, as your risk is unlimited and your profit is limited. (Bullish)
I find https://www.optionsprofitcalculator.com/ to be very helpful when understanding your risk to reward on a certain stock.
I will try my best to update this topic as I continue my studies on options.
Feel free to ask any questions and I'll try my best to answer them.