OPTIONS TRADING
There can be four basic types of transaction in options.
- Buy Calls
- Sell Calls
- Buy Puts
- Sell Puts
1)Buy Calls
Outlook – Bullish
Risk –only to the extent of the premium
Rewards are unlimited.
2) Sell Calls
Outlook – neutral to Bearish
Risk –unlimited
Reward –only to the extent of the premium 
3) Buy Puts
Outlook – Bearish
Risk – only to the extent of the premium
Reward – substantial (lower price 0 cap)
4) Sell Puts
Outlook – neutral to Bullish
Risk – substantial
Reward –only to the extent of the premium)