Questions tagged [put-options]

A put option is a contract giving the owner the right, but not the obligation, to sell–or sell short–a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are [call-options, options, options-assignment, option-exercise and should be used when appropriate.

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Correct evaluation of warrants

The warrant below (on TR) gives me the right to sell a stock for the strike price (at the day of expiry). At the current market price of the underlying of 744 USD and a strike price of 1150 USD, the ...
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How do I close a put option when the company is about to file for bankruptcy?

I opened a put options by selling so I must buy to close. The company I have the open option position with is about to file for bankruptcy. How should I go about closing my put option. What's the ...
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how to sell short - buy/sell to open/close

I'm intstd in selling short as there's a stock I think will drop, but i've never done it and am filled with trepidation. I head to options on my trading site and off the bat seem to have five......
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Do I need to worry about dividends when trading credit spreads?

I trade in the options market, mostly with vertical credit spreads. If one of my underlyings has a dividend coming up, does that affect my holdings? My guess is that the short and long position would ...
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How to calculate an annualized rate of return with a number of cash-secured Puts?

For cash-secured-puts I know how to calculate the annual return of a single one like: (Returns divided by Capital at Risk) x (365 divided by Holding Period in days) With a "wheel" strategy (...
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Is there any difference between placing a "buy & sell call option" & "buy & sell put option"?

I have attached two Options order charts. Max profit & loss are the same. But one (put) costs less than the other (call). Is there any real difference between these two orders? Is there any real ...
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4 votes
3 answers
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What happens to my put options on RSX expiring March 18 2022, if RSX remains halted then?

I bought put options on RSX (VanEck Russia ETF) that shall expire March 18 2022. How can I sell them now for profit? I don't want the underlying RSX shares. I just want to cash out on my gain! If ...
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Why was my Short Put Option position assigned early?

I sold a Put Option months ago. The Option was deep in the money and expired last Friday, but was assigned early the previous Wednesday afternoon. Why? What does the holder of the Option gain from ...
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Making a long put into a long put spread

Let's say I have a long put and it's Friday. I still think it has good potential to move down but I just want to be protected over the weekend in case the trade goes against me drastically because of ...
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Long ratio put spread versus call strategy for stock of ABC company

Part(1) Long ratio put spread versus call strategy for ABC company Current market price:$639, view: moderately bearish Buy 2 February 630 Puts@ 35.00 Sell 1 February 660 Put@ 52.00 Sell 2 February 690 ...
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How to trade stock e.g, BABA using monthly options (wheel strategy)?

Say you want to buy up to 400 shares of BABA in the current $130 range to $100. How do you implement an option strategy in the meantime to make some extra cash while waiting for a $10 stock gain? Buy ...
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How does wash sale rule affect protective puts?

TLDR: Do sales of long puts at a loss and purchase of underlying stock within 30 days qualify as wash sale rule? Let's say I am a long term investor on SPY, and I buy $1,000 of SPY every month on the ...
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Does, buying a put involve someone to sell a call?

Does, buying a put involve someone to sell a call ?. When a trade to buy put is made from one side does it means someone is selling a call from other side. ?
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When to sell put option

Buying a put option happens when market is going down. Correct. If that is true then when should one sell put option ?
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option best ask doesn't move unless I place an order lower than the best ask

as in the picture.Before I placed an order.The best ask was 0.35 and did not move at all.This option's volume was very low. And then I placed a 0.30 sell order, size was 73. Suddenly the best ask size ...
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What does buying put option at a certain amount mean?

Example : BUY BANK NIFTY 39000 PUT @ 246 In trading platform there is no choice like this. How does one interpret this in simple language.
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Calculating put-call ratio when volume is @0

So i have to do a put-call ratio plot. However i have to decide between using open interest and volume to calculate PCR. But in our data, the volume for some put/call options are 0. Is there a way to ...
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Some PUT options down while others are up

I read the other posts about how implied volatility can affect the option price. However, I still cannot explain the following situation. The underlying stock is down 8%, and most of the PUT options ...
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Insurance against margin calls: puts?

I want to take a significant loan from my portfolio, by margin. My portfolio is about 500k USD consisting of all volatile growth stocks like tesla and crispr. I am with IB. My plan is: take a loan ...
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Why does the DJIA take a dip on the 19th of every month since May?

The Dow Jones Industrial Average has a brief downward spike on the 19th of every month since May 2021, except where the 19th falls on a weekend - so, May 19, June 18, July 19, August 19, September 20. ...
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How does expiration/assignment work in synthetic covered call

What happens if I let a short call expire worthless on a synthetic long stock I've purchased. Here's my scenario. Bought a CALL @ 870 and sold a PUT @ 870 both expiring in 177 days. Also sold a CALL @ ...
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Short options trade ITM assignment criteria

Can someone please explain something about the option spreads? How come this broker is not exercising these short options in this video as they are deep in the money? https://www.youtube.com/watch?v=...
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Exercising Adjusted Puts

I am at a loss for what to do about this situation that I "thought" I understood before the Ex-Date happened. I was capitalizing on the 2.25 dividend that SSSS announced. I bought over 200 ...
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Does it make sense as a long-term investment to sell Put Options of a Bonds ETF? [closed]

For reasons outside the scope of this question, I'm thinking of selling Put Options of a Bonds ETF. For this to work, there obviously must be a bias for the share price of the ETF to go up long-term. ...
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(Stock)/Option Positions

I'm studying for my SIE, and I have a question along the lines of Difference between naked put, covered put, protective put. Can someone help me fill in my "??"'s? "Long (stock)/Long ...
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Put option premium decreasing when underlying is also decreasing

Had some spare cash, decided to buy a weekly put for a 7/16 expiry with a $15 strike, $0.55 premium that had an IV of ~500% and I purchased 5 contracts, for a total of $275. The underlying has fallen ...
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What happened if I don't buy back the profitable put option I sold two weeks ago?

Let's say I sold a TSLA put for 2$. If the underlying price moves up, I can buy it back when reaching 50% percent and collect 100$. What happened if the price moves up and I don't buy it back, do I ...
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What will be the impact of time decay on Options Premium?

Let's say you have bought a July Nifty CE or PE in June at Rs. 250 premium. Can you explain how its premium will change over time if nifty increases/decreases towards your strike price? Basically I ...
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How does strike price and assignments work

At the beginning of the week, a stock is $45. A one week $50 call is purchased. On Wednesday the stock fluctuates between $44 and $55, closing at $49. What price info is used to calculate if an ...
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2 votes
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Option chain with nil bid quantity and price

Let's assume I bought a call option ABC CE @.50 and now its value is @.10. There is no bid price or bid quantity. Am I able to sell the option at @.10 anyway?
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Sell Put Strike Price and Share Price

I have a sell put Strike @ $100. At expiry yesterday, share price is @ $100.32. Will I be exercise?
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Question on selling PUT option

I am new to investing. Consider a scenario of investing where, I wish to sell a PUT option at a strike price higher than current market price. Question: Can the PUT buyer exercise the option anytime ...
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Are gains/losses on selling 12 months+ puts short- or long-term capital gains/losses?

If I sell a put and only close the transaction after 12+ months of holding that position, is it a long- or short-term capital gain/loss? Some more context: For part of my portfolio, I sell some long-...
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Option Strategy - Put Sell goes wrong [closed]

I'm bit new on Option Trading and want to ask your opinion/strategy on certain situation. Say, the stock price is $110 and I sold a Put at a strike price $95 and expiry after 60days. After 3 or 4 days,...
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Is It easy to buy back a put-option on its expiry date?

Say I sold a BABA put expiring 5/24 . The usual advise is to close at 50% profit. What If I leave my position open until the expiry date. The put option will be expiring with no value for the other ...
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Sell to Open PUT - Assignment of shares before long expiration

I would like to sell 5 contracts (Sell to Open - Cash reserved PUT) for stock C3AI with expiration of Jan 23 for a strike price of 60 (Stock trading at $69 at this moment). That gives me $9800 premium....
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How do I find the probability of a sold put being assigned?

I read where if you sell a put you should make sure that the probability of being put the stock is no more than 30%. This is assuming of course that you don't really want to own the stock. How do I ...
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Can option writers "buy to close" if holders refuse to sell?

I am new to option trading. How do we know an option is ITM on the expiration date when the underlying asset price could fluctuate throughout the day? If we short a call/put, understand that we &...
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What is the delivery time of the underlying stock on an option and what is the process?

I am new to option trading. I would like to know: For US options, what is the time frame for the underlying stock to be delivered once the call/put is exercised? If sell a call and I am unable to ...
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When buying back a put option, what happens to the buyer?

If I sell a put option and buy it later back, what does that mean for the buyer? Can he now sell the shares to my seller? I don't quite get this relationship. Also, what if I have a very deep ITM put ...
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Put Option Help

As part of a newsletter subscription service, I purchased the following at their recommendation: 4 contracts of USB May 21, 2021 $52.50 Puts at price of $1.33 1 contract of HD May 21, 2021 $295 Puts ...
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Call Option pricing when OTM

In this example, XLX of the binomial option pricing I am pricing American call options using the binomial method. I was wondering if in the first period (0.1), the price of the stock after a downside ...
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Price of a Call Option as you Increase the time periods

I'm pricing call options at the moment and seeing how call option prices change depending solely on the periods of volatility. In one case the stock changes every month, the other it changes every ...
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1 vote
3 answers
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Put option - exercise when it expires but don't have enough money to buy stocks to sell

Ok, so here is my plan. I wanted to buy put options which will sell Tesla stock at Strike price 900 Euro in June, 2021. The price for an option is 2.3 Euro and I will buy 1000 options (total cost to ...
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2 votes
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How and when are CALL/PUT options executed if you're the seller?

Let's say there's a stock trading at $100 and you sell a PUT for $80 that expires the coming Friday. The stock drops to $75 by Tuesday. When are you actually forced to buy the stock? Does the option ...
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What should I do if my cash secured short put is deep in the money?

Due to the recent market situation, many tech stocks are losing their value real quick. I sold a put last month with strike price $80, and it is going to expire by the end of this month (3 more weeks ...
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25 votes
7 answers
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Better terms to use to understand Puts and Calls for options trading

I've been trying to learn a little about options trading, specially puts and calls. The term options works well for my brain because someone is buying or selling the option to buy or sell something. ...
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When it comes to options, is there a "house" like with a sports bet bookie?

While learning about options trading, the following question came up. I'm hoping someone here can help answer it. Please excuse any (likely) imperfect terminology and understanding. Are call and put ...
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2 votes
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As a put option buyer, do I potentially suffer a loss higher than the premium if I forgot to close the option when it is in the money

Many sources only mention that if the option expires worthless, I will lose the premium as the maximum loss. But in reality, I can also lose money higher than the max loss even if my put option is in ...
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1 vote
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Not clear about margin requirements on Shorting Puts

I'm trying to understand how Margin Requirements work when trying to sell a Put Option without having sufficient cash to cover the Option in case it's assigned. For example, let's say I have $100 ...
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