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Put writer option yields

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Put writer option yields


Put writer option yields


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), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

From Wikipedia:A long position in a security, such as a stock or a bond, or equivalently to be long in a security, means the holder of the position owns the security and will profit if put writer option yields price of the security goes up. Put writing is an essential part of options strategies. Selling a put is a strategy where an investor writes a put contract, and by selling the contract to the put buyer, the investor has sold the right to sell shares at a specific price.

Thus, the put buyer now has the right to sell shares to the put seller.Selling a put is advantageous to an investor, because he or she will receive the premium in exchange for committing to buy shares at the strike price if the contract is exercised. The only way to get enough income worth thinking about in Treasurys or CDs is to lock your cash away for five or ten years. But even then we are only talking 2% to 2.5%.Not the ideal scenario for someone looking for additional income.Thankfully, there is a better way.

Writers can sell call or put options that are covered or uncovered. An uncovered position is also referred to as a naked option.




Writer put option yields

Put writer option yields

Put writer option yields



Category: Forex calendar

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