Let's take a closer look at long put options by examining a hypothetical trade. You're downbeat on the prospects for XYZ, which is currently trading at $35 per share. Over the next two months ...
When you buy a long put option on a stock, it's because you expect the shares to decline. In a long put spread, however, you probably have a more concrete downside target in mind. Rather than ...
A huge options position expiring at the end of the month is giving some on Wall Street a new level to fuss over.
Put options can be used either for speculation or for hedging long exposure. Puts can directly hedge risk. For example, if you were concerned about a possible decline in the technology sector ...
Options can also be traded directly—not through a broker—on the over-the-counter (OTC) market. A long put is probably the most straightforward put-trading strategy. If an investor is bearish ...
A long put vertical consists of two put options in the same expiration: a long put closer to the stock price and a short put further out-of-the-money (OTM) than the long put. When setting up a put ...
A put option, on the other hand ... they believe the commodity will cost more in the future is said to be long on that futures contract. For instance, if a bread company believed the price ...
Put options are a type of option that increases in value as a stock falls. A put allows the owner to lock in a predetermined price to sell a specific stock, while put sellers agree to buy the ...
put spread and an OTM call spread, collecting a net credit upfront. As long as the stock or exchange-traded fund (ETF) stays within a set range, the sold options expire worthless, allowing traders ...
A short put vertical spread consists of two put option contracts in the same expiration: a short put closer to the stock price and a long put further out-of-the-money (OTM) than the short put. The ...