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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Can you effectively reduce the cost of a long call on an index with a synthetic long and married put (e.g. replicate an XSP call using SPX options)?
Imagine you want to use periodic cashflows to purchase deep-in-the-money LEAPS (>1yr expiration calls) on SPX, but the size of the cashflows are too small to do so consistently (the cost of such a ...
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Tax-Savvy Pre-Retirement Liquidity Cushion, or IRS Surprise? -using put options and an IRA
I have 300 shares in a regular account with basis 166, trading @ 500. I have over 300 shares of the same in an IRA. I plan to sell 300 shares in the IRA; write 3 puts in the IRA for less than $10,000 ...
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Explaining equity being analogous to a call option and bonds being equivalent to a short put
I read this:
Equity in a corporation is essentially a call option on the enterprise
value (the sum of all the firm’s assets) with a strike price equal to
the firm’s debt. The firm’s bonds are a risk-...
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ITM option exercise immediately after buying on E*Trade
I bought a put option with strike 453 for 3.23 per share with the current underlying price at 448. This means that I should be able to exercise immediately and make 1.77 per share profit. I’m using ...
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DOW Mini Futures Options Liquidity - Symbol YM
I am trading on the Interactive Brokers TWS platform. That is the name of the broker and the platform they offer that I use. I have noticed that there is almost no liquidity on the YM Mini option ...
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Put Options with strikes 30 and 20 on the same asset with same maturity are trading for $6 and $4 respectively. Can you find an arbitrage?
New to finance questions and reading from 150 Most Frequently Asked Questions on Quant Interviews. In the solutions section of this book, it says:
In the plane (K,P(K)) the options values correspond ...
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Understanding Profit and Loss chart with simple option strategy
I am using a platform called Sensibull and I am retail options trader in India, which follows European format of options.
I have shown below a profit and loss chart below
The question that i have is ...
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What happens to First Republic Bank (FRC) Short Puts on acquisition by JP Morgan?
I own 5 Short Puts with strike price @ 11.00 with expiry being 19th May 2023. Since trading is halted, I may not be able to execute or close the position. What will happen to this position once JP ...
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tax treatment of naked put LEAPS held more than one year
Say I sold ONE,(January 21,2022 AMZN 3100 PUT) for $506.25 on September 16, 2020 and bought it back on January 21 2022 for $94.04. Is the Gain Long Term or short term ?
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What happens to SIVB put option holders?
As title implies - I own put options (Strike Price $125, exp. March 17 2023). I am wondering what happens to other owners of put options.
As we all know now, SIVB is in receivership. I do not own ...
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How does buying put orders on robinhood work if you purchase after hours
Here is my current scenario:
I bought a put option for 390.00 on 03/09 after market close, the status is still set as queued
I see now that the aftermarket price is 390.06
If after market goes below ...
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IV applied to Buying Vs. Selling Option Contracts!
Is low IV (Implied Volatility) good for selling or buying options?
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How to Roll Put Options (Buy to open)? (Bought to Open)
I have a put option that I bought to open but the market has moved against me. So I'm looking for a way out of the contract other than taking a huge loss. I want to know my options for rolling them ...
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How options affect the index?
I am not able to get technical/logical reason behind following scenario. Can you please help me to explain the reason behind it?
Context:
Group of stocks makes the index. It means Index is dependent ...
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Are premiums from options taxable at assignment or sale of the security?
If I write puts that end up assigned, meaning I purchase the underlying security, are any taxes generated by the option in the year when it gets assigned? Are taxes only generated when the underlying ...
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Why did my put lose value overnight
I bought a put option yesterday 10/20/22 with a strike price of $26. The price of the security was at $28.00, and the expiration set for 11/18/22. The security price dropped to $20.00 overnight. Why ...
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Bought Put Options that are getting close to Expiration
If I let my option expire ITM (Bought Put Option) I will then own those shares. My account won't allow me to do covered calls or covered puts so I can't leverage against them. What are my other ...
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I have sold stock PUT option with strike 32,5 and expiration date JAN 2023. Stock will be acquired fully in cash for 32,25 in Q12023
What will happen with my PUT option if acquisition will happen before my put option expires?
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Why is simply buying an in-money-call and a lower strike price put near an event date a good low-risk high-reward strategy?
My premise is that buying both an in-money-call and an lower strike price put near an event date, is perhaps, one of the better low-risk high-reward strategy.
Why? If the stock moves significantly ...
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'Inversion' of option chain: calls are more expensive than puts above the strike price! GME
Over the past two days there has been a weird phenomena on GameStop's options where the call options are more expensive than the put options above the strike price. I would have imagined that some ...
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About getting out of a long PUT option trade
I think about making my first options trade and after studying a bit, I couldn't find answers to some of my questions. So here I am.
What I want to do is buy a PUT option on a stock that I speculate ...
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What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?)
What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?) I don't want Theta to negatively affect my gains.
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If I exercise an ITM put option in an account with zero positions open, will the put option exercise if I have adequate capital in my account?
I only buy puts.
I now have a question about exercising puts.
I am not able to exercise puts in my simulated account, so I wanna ask you guys & gals a question before I try it on my real account.
...
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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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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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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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