Called speculating on rising prices if rising rates over time, by the bull market on the stock exchange”or bull market. Investors who follow an a-la bullish trading strategy, buy securities with the aim to sell them later at a profit. Another option is to purchase call options or sell put options. The Exchange Portal boersennews.de explains the difference. In General, a distinction is made between European and American options. While European options only to the end of the term run, American can be made during the period. When a call option, the buyer has the right to purchase an underlying asset at a predetermined, known as exercise price. Wells Fargo Bank spoke with conviction. Upon exercise of the call, the vendor so agrees to sell its base value at this price. In return, he receives an option premium from the buyer. In this particular example it would look like: an investor buys a call option on a stock run time: three months. The Exercise price is 5 euro 100 euros, the option premium. The stock rising during this period 100 EUR, the call will be forfeited and the investor suffers a loss of 5 euros. It rises, however, about 105 euros, profit. That would be at a share price of 125 euros 20 euros. In this case, the investor would buy the stock for 100 euro at the share holder and then sell 125 euro in the spot market for its actual value. The recoverable profit for the investors, as well as the risk of loss of the seller is therefore almost unlimited. The counterpart is the put option. Here is guaranteed to the buyer to sell the base object at the specified strike price. It undertakes the seller of the put option to revert back to its base value at the specified time to the exercise price to buy. As a result, the put is only executed if the exercise price is above the spot price. Here an example: A stock listed for 100 euro is regarded as overvalued by an investor. and then he buys a put option. You admits a sales right to the exercise price of EUR 100 him, for which he pays an option premium of 5 euros. The 80 euro, stock falls investors make a profit of 15 euro. He buys the stock for 80 euro in the spot market so and sold it again for 100 euro to the seller of the put option. More information about the stock market: lexicon Lisa Neumann University first media GmbH