'CALL' trading and 'PUT' trading concepts

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If you take a look at most of the economies round the globe, the segments that enables huge inflow of cash or funds into markets are derivatives and forex. Derivatives are also represented by the name 'futures and options'. In this discussion, I wud like to brief upon the underlying concept of 'options' trading. The subcategories that comes under 'options' are calls and puts. It should be seriously understood that, 'call' and 'put' options trading are the mechanisms carried out in the stock market when one speculates or thinks that, the market is either going to go up or move down respectively. 'CALL' trading: Imagine as a trader, you feel the markets are probably starting show an uptrend due to some global or local factors. In such instances, you would want to make use of the 'call' option trading to make the most out of the uptrend move. It should also be noted that options trading has got an 'expiry' date before or on which you wud have to sell your 'options'. Let me make it clear with an example: Eg: SAY Mr A bought 50 shares of a company at say ' August 530 call'. Now, imagine after buying the 'call' option, the value of share increases from 530 to 550 before the date of expiry of the 'call' option. Now, since, Mr A bought the 'call' contract at 530 and also since he is within the expiry date period, he cud buy more shares of the company at 530 itself although the current market price of the share is 550. So, it shud be understood that while others buy the share at 550, Mr A has got the right to purchase the shares at 530, since he's got the contract to do so. In other words, while others buy the shares of the company at full price, Mr A buys the shares at a discount of 20 ( 550-530). In case, the share price goes below 530 to 510. In such a situation, having a 'call' option contract won't fetch you any gains nor will it incur losses on you. So, remember, a 'call' option is an instrument traded when a trader or an investor feels that, the market is probably going to move up. My next discussion wud be on 'put' option trading...... Hope my briefing of 'call' option is quite enuf to make you understand the concept of trading 'calls'.