How to choose the right put option

How to choose the right put option

If not, move on. I am buying a put in AAPL from you because I am expecting the price to go down over the next month or so. As a result, you're looking at options that have approximately two months until expiration. Also known as the exercise price , picking the strike price is one of two key decisions the other being time to expiration an investor or trader has to make with regard to selecting a specific option. The purchaser of the put option has the right but not the obligation to exercise the option at the strike price anytime before expiration and the seller must purchase shares of the stock if the buyer chooses to exercise the option.

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Options Strike Price - Avoid the Typical Amateur Mistake of Picking the Wrong Option

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How to choose the right put option

6 Replies to “How to choose the right put option”

  1. They can be a limited-risk, leveraged way to profit from rising prices in the underlying.

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