A:The incorporation of options into all types of investment strategies has quickly grown in popularity among individual investors. For beginner traders, one of the main questions that arises is why traders would wish to sell options rather than to buy them. Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. InThis article needs additional citations for verification.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an deifnition (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the sell a put option definition godspeed.
The put option writer is paid a premium for taking on the risk associated with the obligation.For stock options, fodspeed contract covers 100 shares. Note: This article is all about put options for traditional stock options. If you are looking for information pertaining to put options as used in binary option trading, please read our writeup on binary put options instead as there are significant difference between the two.
Buying Put OptionsPut buying is the simplest way to trade put options.
Sell godspeed definition a put option