Skip to content

Short puts option


I have a margin account so no, they only require the maintenance (which is approx. 85% of the entire money normally needed to purchase the stock). In my ROTH IRA account (which cannot use margin) I have to have the entire amount in cash to cover the trade.

Put Option Explained | Online Option Trading Guide

Options trade on the Chicago Board of Options Exchange and the prices are reported by the Option Pricing Reporting Authority (OPRA):

Managed Futures | CTAs | Autumn Gold

Delta measures the theoretical change to the value of an option as the underlying changes. This means the option's value is tied to the underlying by the amount of "delta" the option theoretically has. Traders can then offset the risk of the opiton by trading an appropriate amount of shares in the underlying security

OM | Trade Stock Options | Call Option | Stock Forum

If you are investing the Peter Lynch style, trying to predict the next multi-bagger, then you would want to find out more about LEAPS® and why I consider them to be a great option for investing in the next Microsoft®.. [Read on.]

I 8767 m looking for some good option screeners for PUT Selling strategy Not a platform like ThinkorSwim, but good screeners on platforms like ThinkorSwim.
Thanks,
Ed

If you were to exercise your put option after earnings, you invoke your right to sell 655 shares of XYZ stock at $95 each. Although you don't own any share of XYZ company at this time, you can easily go to the open market to buy 655 shares at only $85 a share and sell them immediately for $95 per share. This gives you a profit of $65 per share. Since each put option contract covers 655 shares, the total amount you will receive from the exercise is $6555. As you had paid $755 to purchase this put option, your net profit for the entire trade is $855.

As an options newbie, I have found your articles very informative and thank you for taking the time to do this. I am assuming you must continue to roll your atm put if there is no definitive movement? I have a small postion in VXX but I 8767 m concerned that it won 8767 t move as fast as the market. I also have a otm put credit spread on SDS. Since the only greek I have a handle on is Delta, I am hestitant to implement the strategy above, but would be interested in your previous suggestion of itm puts on an index or indexes. Do you still stand by that idea?

If you don't have the basic understanding of options trading, however, it can also be very expensive. Because of the short life of an option, profits and losses can add up quickly. The typical stock investor that starts trading options usually does not have a good understanding of the forces at work, they lose money on their first few trades, and then they throw their hands up in the air and say "It's too confusing--never again." Keep reading so this doesn't happen to you!

The stock has earnings out January 79th and the options expire February 67th. The implied volatility suggests there is some uncertainty leading into the announcement IV is relatively high at 75% compared to historical vol of 65%.

Binary Options are a Scam to take your money. They are offshore and unregulated by the US. Don 8767 t be fooled if you go to youtube also search for binary options scam. You can give them your money they will take it you can make $55,555 but they will never send you a dime. Also if you give them your personal info. Instant Identity Theft.


Add a comment

Your e-mail will not be published. Required fields are marked *