What's the main difference between puts and calls?

Been trading for a while but mostly focus on basic trades. I keep hearing about puts and calls but I don’t really understand the difference.

Are they useful to learn or should I just stick with what I already know?

Options are like insurance with upside potential. Buy a call when you think a stock’s going up - you get the right to buy at a set price. Buy a put when you think it’s dropping or want to protect what you already own.

Best part? Your losses are capped at what you paid upfront. Regular trading can wipe you out if things go wrong. I’ve been trading 8 years and use both constantly because I can make money whether the market goes up or down.

Definitely learn this stuff. Options beat regular trades for flexibility and risk management.

Calls make money when the price goes up. Puts make money when it drops.

• Call = you’re betting it’ll rise
• Put = you’re betting it’ll fall

You pay a premium upfront for both. Worst case is losing the premium.

My biggest mistake? Ignoring puts during year two while watching my portfolio tank 40% in a crash.

Calls mean you have the right to buy at a set price when you’re bullish. Puts mean you have the right to sell at a set price when you’re bearish.

Now I buy puts to protect my winners. Already saved my ass three times this year.

Puts can help you hedge losses in a falling market. They’re a smart backup.

Calls are bets that prices will rise while puts are bets they will fall.

If predictions are incorrect, they can expire worthless which limits your loss to the premium you paid. It is safer compared to trades where losses can continue to grow.

Learning about these options is beneficial as they allow for profit in both rising and falling markets.