[Verse 1]
Sarah buys a ticket, pays a small premium fee
Right to purchase Apple stock at one-twenty-three
Contract has a deadline, third Friday of June
If the price climbs higher, she'll exercise soon
This magic paper gives her choice, not obligation
Welcome to the world of option speculation
[Chorus]
Call means up, put means down
Rights you purchase, don't back down
Strike price locked, premium paid
American or European way
Bulls buy calls, bears buy puts
Exercise when the price suits
Options fundamental, learn the dance
Risk and reward in every stance
[Verse 2]
Michael thinks Tesla's heading for a fall
Buys a put option, betting on the crawl
Ninety dollar strike price, expires in September
If Tesla drops below, profits he'll remember
Put holders profit when the stock descends
While call holders cheer when market ascends
[Chorus]
Call means up, put means down
Rights you purchase, don't back down
Strike price locked, premium paid
American or European way
Bulls buy calls, bears buy puts
Exercise when the price suits
Options fundamental, learn the dance
Risk and reward in every stance
[Bridge]
American style, exercise anytime you choose
European waits until expiry, different rules
Strike price is your target, premium what you lose
Time decay erodes value, tick by tick it bruises
Intrinsic worth plus time value equals option price
Moneyness tells the story, in the money twice as nice
[Verse 3]
Writers take the other side, collect that premium gold
But naked or covered, their obligations bold
Assignment notification means your number's called
Exercise the contract, settlement installed
Four basic positions in this options game
Long and short, calls and puts, learn each one's name
[Chorus]
Call means up, put means down
Rights you purchase, don't back down
Strike price locked, premium paid
American or European way
Bulls buy calls, bears buy puts
Exercise when the price suits
Options fundamental, learn the dance
Risk and reward in every stance
[Outro]
From Chicago trading floors to mobile app displays
Options unlock strategies for volatile days
Master these foundations, build your knowledge base
Welcome to derivatives, embrace the marketplace