Day Trading Options

current price when the stock price is higher (later in the day)

pay you a premium (spend a little, to potentially make a lot more in return)

-> This is a Call Option Contract

and rules to obey)

So, somebody promised you, that you can buy the stock from them at a discount
and you pay them a premium in return.
(You want the stock price to rise, otherwise you'll be able to buy stock at a price that's higher than what it's worth - you don't want that!)

(The discount increases - like buying something that's worth $50, for only $25....
then later there's an offer to buy something that's worth $75 for only $25....
then later there's an offer to buy something that's worth $100 for only $25!
A saving of 75% off the price BUT remember there is an additional premium)

Otherwise the demand will decline (i.e. it will lose value)

at a cheaper price in the future - keep your Call Option.

to make a profit.

price, when the stock price is lower (later in the day)

will pay you a premium (spend a little, to potentially make a lot more in return)

-> This is a Put Option Contract

few things to check and rules to obey)

So, somebody promised you, that you can sell the stock to them at a certain price
and you pay them a premium . (They will buy the stock from you at the current
price, no matter how much the stock price increases or decreases.)
(You want the stock price to fall, otherwise you'll be able to sell the stock at a
price that's lower than what it's worth - don't want that!)

(The profit increases - like selling something that's worth $75, for $100....then
later someone offers to buy something from you that's worth $50 for $100....
then later they offer to buy something that's worth $25 for $100! Profit of 75%
BUT @ an additional premium)

anymore. Otherwise the demand will decline.

able to sell the stock (to someone else) at a higher price (the original & lower
stock price) - keep the Put Option

for >$0.50, to make a profit.