This 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 asset (the underlying), at a specified price (the strike), resl a predetermined date (the expiry or maturity) to a given party (the seller of the put).
The sale of put options can be an excellent way to gain exposure to a stock on which you are bullish with the added benefit of potentially owning the stock at a future date at a price below the current market price. To understand how selling puts may benefit your investment strategy, a quick primer on options may be helpful to some.TUTORIAL: Options BasicsCall Options Real put option selling. Put OptionsVery simply, an equity option is a derivative security that real put option selling its value from the underlying stock it covers.
Owning a call option gives you the right to buy a o;tion at a predetermined price, known as the option exercise price. 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. Important legal information about the email you will be sending.
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This means the only stamp duty payable until the contract comes into existence (ie after the exercise of either one or swlling options), is neg.