The objective of the course is to introduce the long put, what some of the benefits are, and what the position looks like graphically. The course also explains how long puts can be components of more complex trades.
Fundamental and Intermediate Students
"Buying Puts" introduces buying puts as a directional, decidedly bearish strategy. This course covers profit potential, maximum risk, primary benefits, and how the choice of a long put's strike price and expiration month can allow an investor to tailor both risk of loss and profit potential.
Introduces what a long put is, what some of the benefits are, and what the position looks like graphically. This chapter also explains how long puts can be components of more complex trades.
In this chapter the benefits of a long put position are explained including the use of long puts to circumvent the Up-Tick rule. Additional topics covered include the fixed profit potential, loss potential, break-even point, the effect of volatility change and the passage of time.
This chapter takes a hypothetical put purchase and then comprehensively expands on each of the sub-topics of Chapter 2. This chapter explains why a put purchase is decidedly bearish and could be a rewarding position for downward stock movement.
This chapter explains how the choice of month and strike correlate to risk and reward. It also discusses how motivations lead us to risk vs. reward assumptions, which then lead us to corresponding months and strikes.
The alternatives of a long put position prior to expiration are explained.
This chapter ties together all the previously discussed concepts.
Review of what you have learned and final quiz.
OIC120P: Essential Options Concepts
OIC121P: Terminology & Mechanics
Questions about anything options-related?
Call or chat with an options
professional now.
Questions about anything options-related?
Chat with an options professional now.
Questions about anything options-related?
Email an options professional now.
This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as a recommendation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500 Chicago, IL 60606 (1- 800-678-4667).
© 1998-2013 The Options Industry Council - All rights reserved. Please view our Privacy Policy and our User Agreement.
