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 | |
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 |
