Riddle me this: What does market behavior have to do with the proportions of the facial features in the Mona Lisa, the ratio of the length of the arms of a spiral galaxy to its diameter, the symmetry of flower petals and pinecone scales, or the ratio the sizes of the cells in the nautilus shell?

Buying a call is the most basic option strategy. One purchases a call option when one expects the stock price to rise above the strike price on or before expiration.

Warren Buffet is often described the greatest investor of all time. When he buys a stock, thousands of investors follow suit. Buffet is such a great investor, not only does he make great stock picks, but he often purchases his stocks at the exact price he chooses! How? Buffet sells puts.

If only there was some way to protect your stock position. Ah, but there is! You can purchase a Put Option.

There are three reasons to buy or sell an option that depend on your expectation for the stock price.

Just like stock traders, option traders hope to make money by buying the option at one price and selling the option at a higher price.

If you're going to trade in options, you first need to understand exactly what an option is ... and how it works.  Find out everything you need to know about what's behind "puts" and "calls" and how they work.