What is a Put Option?

What is a Put Option?

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Education

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• Put
• Option
• economic
• howto
• educational
• finance
• money
• stock
• market
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[CharlieMoher]

Are the people that make these videos on crystal meth ? Alternatively , anyone know how to slow this down ?

[ROT12321]

The person who made the put option available is obliged to buy the stock correct? and therefore the person who made the call option available must sell the stock right? or am I mistaking things?

[person1500]

How do you find someone to bet with? Is it through a broker or do you have to find someone yourself?

[busybuzz83]

the guy's a quack

[DJFU999]

Isn't the character "Dan" exercising a call option in this vid? The right but not the obligation to buy the underlying security.

[iNinjaNotes]

@MeningsMod There's nothing wrong with put options. Put options actually reduce risk to hedge unrealized profits. Buying a put option doesn't affect the price of the stock or the economy. It is a bet between 2 people, and whoever wins will make a profit, the other, a loss. I think your thinking about short-selling which has some negative connotation associated with it. Short selling DOES cause the share price to fall because of selling and increased supply in the open market for that stock.

[educainterna]

@CharlieMoher very true!

[bassvibrateyaface]

@meningsmod A very misguided statement. Put options serve a very valid purpose in risk sharing. It seems you just don't like the idea of some profiting when on the whole, the market is down. Your problem shouldn't be with put options themselves. Keep in mind for every buyer of a put, there is an entity willing to freely engage in the contract and assume the risk of a price decrease in the underlying asset. You would have better luck criticizing certain other forms of derivatives.

[MeningsMod]

Put Options are whats wrong with the economic system. It should not be possible nor legal to speculate in falling market, and earn a profit on it.

[CreazioniPinnacolo]

@CharlieMoher wait im wrong. i watched it again. lol