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1.20.2018 - Free Investment Newsletter Bookmark

How they work
 
The other day I wrote about why using options at times is such a very good thing to do. Cost of entry, the leverage they provide and the speed at which your profit can build are all positives when speaking of using options.
 
But I also said that for most people, the most simple of uses is the best idea. That’s the simple Call option if you think a stock is going to go up, or a put option if you think that it will be heading lower. With just those two, you can play the upside and downside of virtually any stock.

12.10.2014 Financial Intelligence Report Bookmark

What's a Put???

Because of an increased interest in “stock options” lately, we’ve been doing a bit of an introduction to options recently.  On Sunday we explored the idea of what they are and how they function. We discussed the fact that options are no more risky than stocks, and how you shouldn’t be afraid of them at all. They’re simply another tool to use in trading. Then we talked about the basic “call” option.

Today we’re going to look at the other side of the coin, which is called a “put” option.

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