Buying a Call

1. belief that stock will rise (bullish outlook)
2. risk limited to premium paid
3. unlimited maximum reward

Writing a Call

1. belief that stock will fall (neutral to bearish outlook)
2. maximum reward limited to premium received
3. risk potentially unlimited (as stock price rises)
4. can be combined with another position to limit the risk

Buying a Put

1. belief that stock will fall (bearish outlook)
2. risk limited to premium paid
3. unlimited maximum reward up to the strike price less the premium paid

Writing a Put

1. belief that stock will rise (neutral to bullish outlook)
2. risk unlimited down to the strike price less the premium received
3. maximum reward limited to the premium received
4. can be combined with another position to limit the risk