What is the difference between selling a call option and buying a put option?

A Call Option gives you the right but not the obligation to buy the underlying at a specified price and within a specified period. A Put Option, on the other hand, gives you the right to sell the underlying at a specified price and within a specified period. You sell a Call Option or buy a Put Option when you are bearish on the market and want to profit from the downward movement in prices of the underlying. Difference between selling a Call Option and buying a Put Option You get premium for selling a Call Option. You pay a premium to buy a Put Option. Your profit is limited to the premium received. Your profit is unlimited. You can incur unlimited losses if there is a significant increase in the price of the underlying. Your losses are limited to the premium paid plus brokerage paid.