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.

Filter by
Sorted by
Tagged with
0
votes
1answer
27 views

(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 ...
0
votes
4answers
51 views

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 ...
0
votes
1answer
92 views

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 ...
0
votes
2answers
33 views

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 ...
0
votes
3answers
63 views

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 ...
2
votes
2answers
39 views

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?
0
votes
1answer
34 views

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?
0
votes
3answers
61 views

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 ...
0
votes
1answer
56 views

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-...
0
votes
2answers
133 views

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,...
0
votes
2answers
56 views

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 ...
0
votes
2answers
62 views

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....
0
votes
2answers
96 views

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 ...
1
vote
2answers
84 views

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 &...
0
votes
1answer
84 views

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 ...
0
votes
2answers
62 views

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 ...
0
votes
1answer
37 views

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 ...
0
votes
2answers
40 views

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 ...
0
votes
0answers
39 views

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 ...
1
vote
3answers
162 views

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 ...
2
votes
1answer
49 views

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 ...
1
vote
2answers
164 views

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 ...
23
votes
7answers
3k views

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. ...
1
vote
2answers
103 views

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 ...
2
votes
1answer
143 views

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 ...
1
vote
2answers
60 views

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 ...
1
vote
2answers
144 views

Options trading: buy/sell to open/close terminology

I want to buy put options as I believe the price of the underlying asset is going down. In the linked video here at around 1:10 there is a bit saying that for short positions, you 'sell to open' to ...
0
votes
1answer
86 views

Selling a cash secured in-the-money put

I sold a cash secured put for XYZ stock. It is Aug 20, 2021 expiry for $34 Strike Price. The stock was trading at $31.60 when I sold the PUT. I have received $1K premium for selling that option. If ...
0
votes
1answer
60 views

How to hedge/protect my stocks that do not have an option chain?

I've recently invested in a couple of OTC stocks (1st time exploring the OTC market) and unfortunately there's no option chain available. Question is, how can I protect those stocks in particular from ...
2
votes
1answer
84 views

Why are Short Put option strategy losses said to be unlimited when they are limited by fact that stocks don't fall below zero?

This is really more a question about terminology. In many articles describing synthetic long stock options strategy, losses (on the Short Put leg of the trade) are noted as being "unlimited"....
9
votes
2answers
2k views

Who provides the shares for exercising a put option?

I am trying to get into investing and have some questions about options. If I buy a put option (which would be an option to sell stocks as far as I understood), who will provide the stocks to sell if ...
3
votes
1answer
82 views

For an individual brokerage account user, what is the cheapest way to take a short position in a stock?

As far as I know, if I want to sell short, say, $100 worth of stock I need to post $150 in cash collateral and pay some fees each day. Another way is to buy a put option. In that case, I need to pay ...
0
votes
3answers
99 views

Does exercising an option move the price?

This is a follow up question to this one. Summary: There are deep in-the-money puts at strikes of $800 being traded for an instrument whose price is much below that (in the ballpark of $225 at the ...
0
votes
1answer
371 views

Wheel strategy (cash covered puts and covered calls) for an annual income

I'm curious if there's anyone selling cash covered puts and covered calls for income. If so, what is your monthly gross return in percent and how long have you been doing it? I'm considering selling ...
9
votes
2answers
5k views

Deep in the money put options

I'm trying to make sense of this option: Type: put Expiry: 2021-02-05 (= this week's Friday) Bid: 580.4 Ask: 584.9 Contract size: 100 Strike: 800 The underlying's last price is $225. Buying this put ...
1
vote
1answer
98 views

Selling a put option and getting assigned

I am using TD Ameritrade platform. Suppose I write a cash secured short put and the option expires in-the-money. The owner of the option then decides to exercise his right to sell. I am okay with ...
0
votes
1answer
735 views

GME put option price going down as stock price declines…WHY? [duplicate]

Why would the put option price go down when the stock goes down? 3/19 $20 strike down 30% when gme stock down $50. Can someone explain why the put isn’t gaining value?
1
vote
1answer
163 views

Please explain this put option

Earlier today, I purchased 2 put options on GME. The opening price was around $295. The price dropped $30 in 45 minutes to below $265. Why am I not making any money? I looked at all of the put option ...
1
vote
2answers
84 views

Are there any major advantages of selling put options with a longer expiry date?

If I wish to sell put options to collect the premium, are there advantages of setting a time to expiry of 56 days as opposed to 30 days? Does this lower the risk? Here I am considering American style ...
3
votes
1answer
55 views

Protect “Riesterrente”-retirement account from downside of liquidation

My mom has a german retirement portfolio called "Riester-Rente". Portfolio is mix of bonds and an international fund (DE0008491051). Long explanation: As part of legal compliance, they need ...
0
votes
2answers
162 views

Why sell a short put at a strike price above current price of the underlying?

I understand that selling a put below the current market value provides: A premium paid up front A chance to buy stock at a lower price Item 1 achieves its maximum gain if the price of the ...
3
votes
2answers
2k views

Put Option shown as negative value

I have a cash-secured $4 Put Sell @ $0.41 through Robinhood; decided to do a low expense introduction to options. When this contract was opened, I was credited the premium of $41 and had $400 set in ...
1
vote
1answer
193 views

Why roll a credit spread out and keep the same strike price?

I’m confused: Why would you ever buy the same strike price when rolling out a bull put spread if the price has moved against you? If the price ever falls below the price you sold the put for, you can ...
1
vote
1answer
67 views

2 questions about puts/calls/shorting

I have 2 questions about puts/calls + shorting in my learning about options. I'm confused about how "short selling" a stock is the same/different as "writing a covered call." In ...
0
votes
1answer
40 views

Option Premium Increasing Toward Expiration

I understand that premium pricing is dependent upon a few factors like intrinsic price and time value, the latter being affected by volatility. But as I look at my risk profile in thinkorswim on a ...
1
vote
1answer
30 views

spx vertical bull put price selection

I just started trading SPX vertical bull put spreads. Had a few winners but am not sure about picking the right credit prices. It seems like system always recommends mid prices for opening or closing ...
1
vote
1answer
83 views

Out of money option not worthless at the expiration

I just started selling the cash secured puts. I was under the impression that all options unless in the money expire worthless on the expiration day but apparently that's not the case. I had sold a ...
1
vote
1answer
36 views

Vanilla options on major US equity indexes – what is the best way to buy them via individual brokerage account?

Please help me with two questions: What is the best way to buy plain vanilla options on US large, mid, and small cap indexes, such as Russell. I’m looking for some actively tradeable options with ...
2
votes
1answer
159 views

Stock Sold at Loss, Will buying a Put Option Cause a Wash Sale?

I sold 250 shares of a stock at a loss of (-1,000). 2 weeks later bought a single put contract (100 shares) n the same stock. If I sell the put option for profit a few days later, is this a partial ...
3
votes
2answers
208 views

ITM Options that are already profitable including the premium

Note: I am new to options and not very experienced. There are generally no free meals in life, and in the stock market, if something is too good to be true, it is. I have researched this question ...

1
2 3 4 5