Options come in two types – Calls and Puts.

– Call Options: Buying a call option gives the holder the right to buy a stock at a specified price, at any time, before the expiry of the contract period. Investors buy calls when they believe the price of the underlying stock will increase.

– Put Options: Buying a put option gives the holder the right to sell a stock at a specified price, at any time, before the expiry of the contract period. Investors buy puts if

they believe the price of the underlying stock will decrease before the option expires.

The buyer of a call/put option has the right, but not the obligation, to buy/sell an underlying asset. This contrasts with the seller or writer of the option, who is obligated to sell/buy the asset if the buyer chooses to exercise.

– Reference: [Investopedia: Call Option vs Put Option](https://www.investopedia.com/ask/answers/12/difference-between-call-put-option.asp)