Skip to main content

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
1 vote
3 answers
77 views

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 ...
WU-TANG's user avatar
  • 179
0 votes
4 answers
189 views

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. ...
user avatar
0 votes
1 answer
63 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 ...
Jeffrey Rolland's user avatar
0 votes
4 answers
144 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 ...
pstatix's user avatar
  • 353
0 votes
1 answer
106 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 ...
diamondx's user avatar
  • 115
0 votes
2 answers
199 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 ...
Selvam's user avatar
  • 1
0 votes
3 answers
135 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 ...
Ayusman's user avatar
  • 103
2 votes
2 answers
142 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?
Paras's user avatar
  • 21
0 votes
1 answer
36 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?
Henry Koh's user avatar
0 votes
3 answers
207 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 ...
Ayusman's user avatar
  • 103
0 votes
1 answer
133 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-...
David Karam's user avatar
0 votes
2 answers
150 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,...
Nazmul Hassan's user avatar
1 vote
2 answers
109 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 ...
diamondx's user avatar
  • 115
0 votes
2 answers
117 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....
Jake's user avatar
  • 103
0 votes
2 answers
351 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 ...
Chris P's user avatar
1 vote
2 answers
171 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 &...
user15587922's user avatar
0 votes
1 answer
632 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 ...
user15587922's user avatar
0 votes
2 answers
248 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 ...
Juergen's user avatar
  • 135
0 votes
1 answer
43 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 ...
Ann's user avatar
  • 1
0 votes
2 answers
66 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 ...
J0fClubz's user avatar
0 votes
0 answers
58 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 ...
J0fClubz's user avatar
1 vote
4 answers
2k 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 ...
Bằng Rikimaru's user avatar
2 votes
1 answer
168 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 ...
leigero's user avatar
  • 275
1 vote
2 answers
1k 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 ...
Raven Cheuk's user avatar
25 votes
7 answers
5k 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. ...
End Antisemitic Hate's user avatar
1 vote
2 answers
124 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 ...
End Antisemitic Hate's user avatar
2 votes
1 answer
361 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 ...
Raven Cheuk's user avatar
1 vote
2 answers
181 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 ...
user avatar
1 vote
2 answers
622 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 ...
jeremy_rutman's user avatar
0 votes
1 answer
279 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 ...
Jonathan's user avatar
0 votes
1 answer
134 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 ...
Jason A's user avatar
2 votes
1 answer
172 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"....
lampShadesDrifter's user avatar
9 votes
2 answers
4k 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 ...
Can't Tell's user avatar
3 votes
1 answer
108 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 ...
James's user avatar
  • 157
2 votes
3 answers
138 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 ...
thwd's user avatar
  • 215
0 votes
1 answer
688 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 ...
DotNetRussell's user avatar
9 votes
2 answers
6k 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 ...
thwd's user avatar
  • 215
1 vote
1 answer
409 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 ...
ck8's user avatar
  • 13
0 votes
1 answer
953 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?
Waajoor's user avatar
2 votes
1 answer
187 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 ...
Zed's user avatar
  • 21
1 vote
2 answers
130 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 ...
mr_js's user avatar
  • 113
3 votes
1 answer
63 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 ...
Tearsdontfalls's user avatar
0 votes
2 answers
4k 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 ...
pstatix's user avatar
  • 353
4 votes
2 answers
6k 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 ...
pstatix's user avatar
  • 353
1 vote
1 answer
571 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 ...
Dinosaur Reporter's user avatar
1 vote
1 answer
105 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 ...
Tallboy's user avatar
  • 123
0 votes
1 answer
53 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 ...
J. Adam Connor's user avatar
1 vote
1 answer
51 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 ...
JohnZee's user avatar
  • 39
1 vote
1 answer
154 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 ...
JohnZee's user avatar
  • 39
1 vote
1 answer
49 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 ...
James's user avatar
  • 157