The 4 Basic Options Investments
Options may seem like an incredibly complicated investment tool. And certainly, if you're not careful with them, you can put yourself in a situation with options where you could lose more than 100% of your invested capital. Despite that risk, they're actually rather straightforward, with only four basic types of investments involved. Where they get complicated is when you combine multiple options contracts together into what are known as multilegged positions.
In their standard form, options come in two flavors: puts and calls. As an options investor, you can open an options position by either buying or selling either kind of option. That makes buying calls, selling calls, buying puts, or selling puts those four basic options investments.
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Source Fool.com
