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Definition of short put option in stock

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Definition of short put option in stock


Definition of short put option in stock


The option itself is a security in its own right, as it can be purchased and sold. Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. 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).

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. For the best experience, please update your browser with the latest version. Thank you for visiting Scottrade.com.

We have implemented a Skip to Main Content link and improved the heading structure of our site to aid in navigation with a screen reader. We are consistently making improvements to the accessibility of our definition of short put option in stock. Short Put StrategiesWhen you short a put option, you receive an upfront premium from the buyer. You also could be obligated to buy shares of the underlying stock.




Of option put short definition in stock

Definition of short put option in stock

Definition of short put option in stock



Category: Fx trading

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