Baktru t1_jabwyqs wrote
Reply to comment by cshaiku in ELI5 - What are calls/puts in stock trading, and how are returns calculated when they are executed? by burman07
No you would buy a call at a lower strike if it's going down but you think it will go up again soon. But trading calls puts is more complicated than just that. Generally speaking though, if you think the underlying will rise less than the interest rate, buy puts, if it will rise more, buy calls.
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