OPTIONS STRATEGY GUIDE

Strategy - BUY PUT (details below)

• bullish
• bearish
  • very bearish
  • certain that the market will not rise
  • moderately bearish + fairly certain that the market will not rise
  • flat or mod. bullish in near-term (weeks) + bearish in longer term (months)
  • hold stock and bearish
• neutral
• volatile

BUY PUT

Время стратегии
Investor thinks that the market will fall significantly in the short-term. .

Способ формирования
Put option is bought with a strike price of a. The more bearish the investor is, the lower the strike price should be.

Потенциал роста
Profit potential is unlimited (well, not really unlimited of course as the market can not fall below zero).

Breakeven Point at Expiry
Strike price minus premium paid.

Риск падения
Limited to the premium paid - incurred if at expiry the market is at or above the strike a.

Маржа
Not required

Коммннтарий
If the market does little then the value of the position will decrease as the option time value falls.

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