Profitable put option investopedia


Put option investopedia profitable


While some investors have the misconception that option trading can only be profitable during periods of high volatility, the reality is that options can be profitably traded even during periods of low volatility. Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. A put is an option contract that gives the owner the right, but not the obligation, to invesfopedia 100 shares of the underlying stock at a specified price (which is known as the strike price of the put) at any time before a specific time (the expiration date of the put).Bearish traders would use puts because the value of the put should go up if the price of the underlying stock goes down.

Find out more about these financial contracts and how they work.Be the first to check out our latest videos on Investopedia Video. A round lot has turned into a standard trading unit otion the public exchanges for quite way back when. Usually, to get a broker agent, they profitable put option investopedia their commission for the transaction for minimum 100 units of share at the certain price. Whenever we buy lower than 100 units of share, they still impose us this commission.




Profitable put option investopedia

Profitable put option investopedia


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