Back
BlogsPUT OPTIONS

CALL OPTIONSEND OF DAY REPORT JUNE 7th

PUT OPTIONS

Stay ahead and keep your mind focused.

Categories

Learning

Option Strategies

The simple textbook definition is a buyer of a Put option has the right (but not the obligation) to sell a specified quantity of a security at a specified price (strike price) within a fixed period of time (expiration date).

Outright Put buying has almost unlimited upside with limited downside. Securities mostly don’t go below $0 (ahem…Crude oil) so most securities upside is capped by the $0 boundary. The downside of a Put buyer is limited to the premium they paid for that Put, same as a call buyer. A seller of a Put has the exact opposite risk profile as the Put buyer. The seller collects the premium paid for the Put, but also has that “unlimited” downside.

PROFIT AND LOSS GRAPH (at expiration)

QUIZ TIME

Test your skills with are questionnaire and challenge the waves.

If I buy a PLTR $10 put for $1, what is my maximum profit

Related reads

Learning
Option Strategies
CALL OPTIONS-image

Darren Krett

Wednesday, 7 June 2023

CALL OPTIONS

The simple textbook definition is a buyer of a Call option has the right (but not the obligation) to buy a specified quantity of a security
CALL OPTIONS

0


Comments (0)

General
WHY OPTIONS?-image

Darren Krett

Friday, 10 February 2023

WHY OPTIONS?

Options limit risk a. An option gives the holder a risk-limiting position in the underlying. b. Because they limit risk, they provide symmet
WHY OPTIONS?

0


Comments (0)

Get started with Leviathan FM today

7 day free trialContact us
See our pricing

© 2015 - 2023 Leviathan Financial Management LLC. All Rights Reserved.

Legal Disclaimer: The information provided in the Leviathan website is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor professional to determine what may be best for your individual needs. Leviathan Financial Management does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, Leviathan Financial Management disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice. Your use of the information on the website or materials linked from the Web is at your own risk.