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Understanding put and call options; How to use them to
Put options are the opposite of calls. But, although they are both bearish positions, buying puts is quite different. In fact, buying a put can be better than shorting the stock itself because your risk is limited to the amount you paid for the put option.If the market falls, both trades would be profitable but if the market rises, your risk in a short stock trade is theoretically unlimited.The process of buying a put is relatively simple.
An option is a contract that gives the owner the right, but not the obligation, to buy or sell a security at a particular price on or before a certain date.Investors buy and sell options just like stocks.
Options; call Understanding and use to to them put How