Put

• Option to sell
• Provide short position when exercised
  • Used for hedging
• Increase in value
  • Underlying asset falls in price
  • Volatility of the underlying asset price increases
  • Interest rates decline.
• Lose value
  • Underlying asset increases in price
  • Volatility of the underlying asset price decreases
  • Interest rates rise
  • Time to expiration nears.

From <https://www.investopedia.com/terms/p/putoption.asp>

Call

• Option to buy
• Kind of like a down-payment

Out of the Money

• No intrinsic value
  • Only extrinsic value
    • The premium
    • Can still make money without going into the money if it approaches it
      • Premium goes up
  • No point exercising, can get a better price on the market
• Higher than current price for CALLS
• Lower than current price for PUTS

Styles

• American
  • Can exercise at any point before expiration
• European
  • Can only exercise at expiration