The price can potentially keep moving up till it enters a short squeeze. However, with the put option, you can only lose the premium you paid for the contract, and the expected reward is high.

If the investor does not hold the underlying stock and exercises a put option, this would create a short position in the stock. Factors That Affect a Put’s Price In general, the value of a put ...

So you’re considering diving into a short put options strategy to try to generate some cash and possibly pick up the security. If your move was prompted by a quick conversation with your buddy, ...

consisting of a long at-the-money put option and a short at-the-money call option, which allows DIPS to seek to participate on an inverse, unleveraged basis in changes, up or down, to the share ...

That's the short summary of these options ... If Netflix plummets to $400, then you're up $40 per share ($4,000 total) on your put option. If it doesn't drop below $450 at all, then you'd only ...

Its out-of-the-money (OTM) put options still have high premium ... So, even though META ended up falling by a small amount, the short put play worked out as the investor had no obligation to ...

In addition, the put options have a finite time to expiry. The short sale can be held open as long as possible, provided the trader can put up more margin if the stock appreciates in value and ...

In addition, the put options have a finite time to expiry. The short sale can be held open as long as possible, provided the trader can put up more margin if the stock appreciates in value and ...