> For the complete documentation index, see [llms.txt](https://docs.sharptrade.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sharptrade.fi/sharp-options/options-strategies.md).
# Options Strategies
## Trading Call Options
### Buy Call
You think the price of the asset will go above the Strike Price before the Expiration date and pay a Premium to the option seller for the right to buy the seller's asset lower.\
**Upside**: unlimited as the maximum token price is not limited.\
**Risk**: you risk losing Premium if option expires unexercised, no liquidations on price movements down. \
**Example**: If you buy a call option on 1 $SOL at a Strike Price of $170 for a Premium of $5, you have the right to buy 1 $SOL for $170 and profit if the $SOL goes above $175 before the expiration.\
\*having $SOL market price at $160 for all the examples.
### **Sell Call**
You think the price of the asset will not go above the Strike Price before the Expiration date. You want to earn a Premium for providing your asset and don't mind selling your asset higher.\
**Profit**: you earn a guaranteed Premium and sell higher (for a Strike Price) if option gets exercised.\
**Risk**: if price skyrockets then your profit is limited, if price drops you miss selling your asset higher.\
**Example**: If you sell a call option on $SOL with a Strike Price of $170 for a Premium of $5, you earn $5 upfront. If $SOL stays at or falls below $170 and the option isn’t exercised before the Expiration, you redeem your $SOL. Otherwise, if exercised by buyer, you get $170 for your $SOL. APY is \~400%.
Buying and Selling Call Options
## Trading Put Options
### **Buy Put**
You think the price of the asset will go below the Strike Price before the Expiration date and pay a Premium to the option seller for the right to sell the asset to the seller higher.\
**Upside**: limited with the token price as the maximum token price drop is zero.\
**Risk**: you risk losing Premium if option expires unexercised, no liquidations on price movements up. \
**Example**: If you buy a put option on $SOL at a Strike Price of $150 for a Premium of $5, you have the right to sell 1 $SOL for $150 and profit if the $SOL goes below $145.
### **Sell Put**
You think the price of the asset will not go below the Strike Price before the Expiration date. You want to earn a Premium for providing cash and don't mind buying the asset lower.\
**Profit**: you earn a guaranteed Premium and buy lower (at a Strike Price) if option gets exercised.\
**Risk**: if price drops then you are forced to buy higher, if price skyrockets you miss buying asset cheaper.\
**Example**: If you Sell a Put option on $SOL with a Strike Price of $150 for a Premium of $5, you earn $5 upfront. If $SOL stays at or rises above $150 and the option isn’t exercised before the Expiration, you redeem your $USDC. Otherwise, if exercised by buyer, you get $SOL for your $150. APY is \~450%.
Trading Put Options
Now, that you have a general understanding of options and the key terms, let's see how they work in practice and move on to the Sharp Options Platform overview.