Divergence Secrets

There are two main types of options: Call Options and Put Options.

A Call Option gives the buyer the right to buy an asset at a predetermined price, called the strike price, before the expiry date. Investors buy calls when they expect the price of the underlying asset to rise.

A Put Option, on the other hand, gives the buyer the right to sell an asset at the strike price before expiry. Traders buy puts when they expect the asset’s price to fall.