How can I use Call and Put Options effectively?

Before trading options, analyse

the underlying asset and try to predict whether its price will rise or fall over the next month.

• If you expect the price to go up: You might buy a Call Option to benefit from the price increase, or sell a Put Option to earn premium income with the possibility of buying at a lower price.
• If you expect the price to go down: You could buy a Put Option to profit from the price drop, or sell a Call Option to collect premium income while potentially selling at a higher price.