How Market Direction Affects Call and Put Values

Options prices react differently depending on whether a stock rises, falls or stays flat. This segment breaks down how call and put values shift with market direction and time decay.

0:00 Introduction: Call Option Rights
0:18 Call Buyer: Right to Buy
0:31 Call Seller: Obligation to Sell
0:45 Put Buyer: Right to Sell
1:00 Put Seller: Obligation to Buy
1:12 Assignment: When Obligations Happen
1:27 Exercise Decision: Buyer Controls

Register to view the complete Beyond Directional Thinking: Understanding Straddles and Strangles webinar: https://bit.ly/4hv94eL.