Introduction to Put Options
The Put Option is the exact opposite of a Call Option. Put Options increase in value when the value of a stock or index drops in price. We define what a Put Option, and just like we did in the Call Option, we consider a real-world example of a Put Option. Fortunately, we have excellent examples of Put Options in real life – when we buy Insurance for our car or home, we are actually buying a Put Option. This example should make it absolutely clear what a Put Option is. The course looks at buyer and seller perspectives in a Put Option transaction, and analyzes the breakeven, and profit and loss profiles, all using the real world example first. Finally, we look at expiry and settlement procedures for Put Options.
Course Details
Calls and Puts
What is the difference between a Call Option and a Put Option and why the Put Option is a Bearish instrument
Put Options and Protection
Why is a Put Option the ultimate protector of your stock holdings
Put Option example
Study a real world example of a put Option, and fortunately we have excellent examples of Put Options in real life
Types of Options
What is the difference between buying and selling a put Option (or Call Option) Study of ATM, ITM and OTM Put Options
Option Pricing Factors
Similar to Call Options, what factors impact the price of a Put Option
Risk and Reward of Put Options
How does the risk and reward profile differ for a buyer and seller of Put Options and the difference between Call Options
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