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Summarizing The Call And Sales Options

There is no limit to the amount that a short seller can lose because there is no limit to the amount of the stock price. Conversely, the limit for the loss amount that buyers of sales options may suffer is the amount they invested in the put option itself. A put option gives the buyer the right to sell the underlying asset at the option's strike price. The profit that the buyer gets from the option depends on how far below the spot price falls below the strike price. You have a loss of value, but you don't have to pay extra money. Options give investors the right, but not the obligation, to negotiate securities, such as shares or bonds, at predetermined prices within a specified period specified on the option's maturity date. A put option gives your buyer the right to sell the underlying

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