When Should You Buy / Sell Call or Put Option?

As we know, buyers would profit if they buy a security at lower price and sell it at a higher price (Buy Low, Sell High), while Sellers would profit if they sell a security at higher price and then buy it back to close their position at a lower price (Sell High, Buy Low).

Since Call option price goes up when the underlying stock�s price goes up, and vice versa, we would buy a Call Option if we are bullish and expect a stock will increase before option expires.
On the other hand, we will sell or "write" a Call Option if we are bearish and anticipate a drop in the underlying stock�s price before the option�s expiration date, or if we expect the stock price to move sideways.

As for Put options, since Put option price increases when the underlying stock�s price decreases, and vice versa, we will buy a Put Option if we are bearish and foresee a stock will move downwards before option expiration. Conversely, we will sell or �write� a Put Option if we are bullish and expect a stock will move up before option expires, or if we think the stock price will go nowhere.

However, before you decide if you should be a buyer or seller, it is extremely crucial to understand potential risk & rewards for options buyer vs. seller.