Options Contract Types Call Put Warrant Option Trading

Types of options in Online Options Trading : warrant, call options, and put options.
  • Warrant is the option that issued by a firm. Warrants give the holder the right to buy the firm stock from the firm at a specified price within a designated time period.
  • Call option is the option to buy the stock of a firm within a given time at a specified price.
  • put option is the option to sell the stock of a firm within a given time at a specified price.
What is the difference between warrants and call options in Online Options Trading?
  • warrants are issued by the firm and call options are issued by another investor.
  • warrants usually has longer time period than call options.
Conclusion:
  1. If you expect the stock price to appreciate, then you can buy warrants or call options.
  2. If you expect the stock price to decline, then you can buy put options.
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