Calls & Puts

The two option contract types (not styles) are Calls and Puts.

Call

Buyers of call options generally expect the underlying asset to increase in value, whereas sellers of calls expect a decrease in value, or for the value to remain the same.

Buying a call gives you the right, but not the obligation, to buy the contract size amount of the underlying asset at the option's strike price. The value of a call option should increase as the price of the underlying asset increases.

Put

Buyers of put options generally expect the underlying asset to decrease in value, whereas sellers of puts expect an increase in value or for the value to remain the same.

Buying a put gives you the right, but not the obligation, to sell the contract size amount of underlying asset at the option's strike price. The value of the put option should increase as the price of the underlying asset decreases.