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Put options give the buyer the right to sell a particular stock at the strike price. For the employee incentive, see Employee stock option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. Too often, traders jump into the options game with little or no understanding of how many options strategies are available to limit their risk and maximize return.
With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power riisks options as a trading vehicle. Options trading can be an effective way of generating wealth, whether as part of a wider investment strategy or as a standalone technique. The flexibility options provide in allowing you put option risks list profit from rising and falling markets, as well as the ability to simply let options expire without significant financial cost, make them powerful products.However, options do carry risks.
Pyt in-the-money options have intrinsic value. It represents the difference between the current price of the kist.
Put option risks list