You'll see these terms used all the time, so understanding them is a must. Image source: The Motley Fool A call option is the right to buy a stock at a specific price by an expiration date ...

The other major kind of option is the call ... Buying puts is appealing to traders who expect a stock to decline, and puts magnify that decline even further. So for the same initial investment ...

such as stocks and shares or currencies at a predetermined price within a specific time frame. A put gives you the right to sell at a pre-determined price, while a call gives you the right to buy ...