How to BUY a PUT Option – [Option Trading Basics]
Today you’re going to learn what a put option is, when do people use it and why you may want to purchase a put option.
What is a put option?
When you’re buying a put, it means you’re looking for the stock to go down, which means you have a slightly bearish outlook. If you’re a seller of a put, it means you’re looking for the stock to go up, which is bullish. Don’t get those two things confused. In this video, we’re focused on the buying side of a put.
Why would you want to buy a put?
Let’s say you own 500 shares of Netflix. You can hedge or protect that investment by buying a put contract. What you may want to do is buy a new put contract, so that way, if that stock goes down, at least you make a little bit of money on the put.
However, the put contract is not going to replace you getting out of the stock, it’s not going to totally negate your position, it’ll only protect a little small part of it. And ultimately that’s what people do when it comes to trading put option contracts.
Each option contract covers 100 shares. So if you own 500 shares of Netflix for example, you can decide how many of those shares you want to hedge or protect, by buying one, two, three or more put contracts.
In this video, we’re looking at how to buy a put option. We will look at a risk profile picture and what that looks like when it comes to buying a put. Also, we will break it apart and evaluate it for different scenarios.
And finally, we’re going to look at how to buy a put option on a trading platform, where I’ll explain in depth how buying a put option contract works, and what are some of its benefits.
#buyput #putoption #optiontrading #tradingbasics
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How to BUY a PUT Option – [Option Trading Basics] is often the biggest purchase you’ll make in your life. It’s actually important you have the ideal information, at the perfect time, to make certain you make informed decisions.
How to BUY a PUT Option – [Option Trading Basics]
How to BUY a PUT Option – [Option Trading Basics] house can be very different from purchasing a secondhand house. You might be buying off-plan, meaning that the property might not even be constructed yet.
While purchasing with How to BUY a PUT Option – [Option Trading Basics], you might have to put a reservation fee to your buying.
Many online store will request that you swap contracts and pay a deposit soon after buying. You need to ensure that your lender and authorized agent are conscious of the deadline and can meet it.
Many online store will have referral relationships with particular How to BUY a PUT Option – [Option Trading Basics] and authorized representatives. You’re under no duty to utilize these companies if you do not need to. More information on this is seen on the Home Owners Alliance site.
There might be additional fees connected with a How to BUY a PUT Option – [Option Trading Basics], such as estate center fees. Ensure that your legal agent fully explains the facts of the contract so that you understand what you’re signing up for.
If your house is still being assembled, your online store may provide you a date by which your house ought to be completed. On certain occasions this date might be postponed or brought forward. Ensure to understand what’s going to occur in either situation. If the former, your mortgage provide might want to be refreshed because they generally only last for a restricted period.
A long-stop date could be written into your contract, which lets you draw from the purchase at case of long delays to the house being completed.
You need to think about agreeing at trade a snagging survey ought to be completed when the land was constructed and before conclusion.
This poll can be performed with an expert firm or completed yourself. You need to report back any problems to your programmer and request them to be dealt with until you proceed in.
Most new construct houses have a 10-year guarantee for important structural difficulties and a 2-year guarantee for general flaws, but this might not cover all of the home and any connected land. Ensure that you are clear about what is and isn’t included in the guarantee before you set down a deposit.
Prior to making an offer, know what will and will not be repaired prior to conclusion and what happens in the event that you’ve got a dispute with the builder. Ensure that you ask the programmer for all material facts regarding the house before you commit to purchasing.