Options. Another way to leverage a relatively small outlay of cash is to buy "call" options to purchase a particular stock later at close to its current price. If the market price rises, the trader can exercise the option, making a big profit by then selling the shares at the higher market price (alternatively, the trader can sell the option itself, which will have risen in value as the price of the underlying stock has gone up). An option to sell stock, called a "put" option, works in the opposite direction, committing the trader to sell a particular stock later at close to its current price. Much like short selling, put options enable traders to profit from a declining market. But investors also can lose a lot of money if stock prices do not move as they hope. 62