If you expect a stock's price to rise, it would be better to purchase a call on that stock than to purchase a put on it.

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A call option gives the holder the right to buy the underlying stock at a predetermined price (strike price) within a specific time period. If the stock price rises above the strike price, the holder can exercise the option and make a profit. On the other hand, a put option gives the holder the right to sell the underlying stock at a predetermined price within a specific time period. If the stock price rises, the holder of a put option would not benefit and would actually lose money. Therefore, if you expect a stock's price to rise, it would be more beneficial to purchase a call option than a put option.

If You Expect a Stock's Price to Rise, It Would