[Verse 1]
When markets move up and down each day
There's a tool to help you find your way
Options give you rights without the duty
To buy or sell with planned security
A contract made between two parties here
The buyer pays a premium crystal clear
While the seller takes on obligation's weight
To honor terms by the expiration date
[Chorus]
Call it up when prices rise
Put it down when value dies
American can exercise anytime
European waits until the deadline
Strike price, premium, expiration date
These are the terms that seal your fate
Options fundamentals, learn them well
Rights to buy and rights to sell
[Verse 2]
A call option gives you the right to buy
At the strike price when the market's high
If you think the stock will climb up steep
Buy a call, the upside you can keep
A put option works the other way
Gives you rights to sell at strike and stay
Protected when the market starts to fall
Put your worries away, you've hedged it all
[Chorus]
Call it up when prices rise
Put it down when value dies
American can exercise anytime
European waits until the deadline
Strike price, premium, expiration date
These are the terms that seal your fate
Options fundamentals, learn them well
Rights to buy and rights to sell
[Bridge]
In the money means there's profit there
Out of money means the cupboard's bare
At the money means you're breaking even
Time decay keeps value decreasing
Moneyness tells you where you stand
Exercise styles help you understand
When you can use your option's power
American style, any hour
[Chorus]
Call it up when prices rise
Put it down when value dies
American can exercise anytime
European waits until the deadline
Strike price, premium, expiration date
These are the terms that seal your fate
Options fundamentals, learn them well
Rights to buy and rights to sell
[Outro]
Long or short position that you take
Options strategies help your portfolio make
The moves you need in any market weather
Understanding puts and calls together