# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sharptrade.fi/sharp-options/options-strategies.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.