Introduction to Put Options
The Put Option is the exact opposite of a Call Option.
ABOUT THIS COURSE
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.
- 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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