The difference between Call Option & Put option seller
| Parameters | Call Option | Put Option |
|---|---|---|
| Meaning |
The call option provides buying rights to the buyer, but without any obligation of buying
|
Put option provides selling rights to the buyer without any obligation to sell
|
| Expectations of the Investors |
Call option buyers expect that the stock or index prices will increase
|
Put option buyer is determined that the stock or index prices will decrease |
| Profits |
There are unlimited profits for a call option buyer
|
The profits are limited for a put option buyer since the stock or index prices won’t become zero
|
| Loss |
The loss is limited to the premium paid for a call option buyer
|
The maximum loss for a put option is the strike price minus the premium amount |