Put Option Basics
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AuthorAJ Monte
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LevelSTU 200 Level
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Video time30-60 minutes
Course Description
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Here is what we will cover in this course
What is a Put Option?
A put option is a contract giving the contract buyer the right, but not the obligation, to sell (or sell short) a specified amount of an underlying security at a predetermined price within a specified time frame.
Strike Price
The specified price is called the strike price, and the specified time during which the sale can be made is its expiration (expiry) or time to maturity.
Purpose
Put options may be purchased for speculation, sold for to get a lower buy-in price, or used in a variety of different spread related strategies.