Learn Option Basics Part 4

Learn Option Basics Part 4

WHAT IS A LONG PUT?

A long put refers to buying a put option, typically in anticipation of a decline in the underlying asset. The term “long” here has nothing to do with the length of time before expiration but rather refers to the trader’s action of having bought the option with the hope of selling it at a higher price at a later point in time. A trader could buy a put for speculative reasons, betting that the underlying asset will fall which increases the value of the long put option. A long put could also be used to hedge a long position in the underlying asset. If the underlying asset falls, the put option increases in value helping to offset the loss in the underlying.

KEY TAKEAWAYS

• Investors go long put options if they think a security’s price will fall.

• Investors may go long put options to speculate or hedge a portfolio.

• The downside risk is limited using a long put options strategy.

Learning Outcomes

• Over 30 lectures and 3 hours of content!

• LIVE PROJECT End to End with Testing Training Included.

• Learn Option basics from a professional trainer from your own desk.

• Information packed practical training starting from basics to advanced testing techniques.

• Best suitable for beginners to advanced level users and who learn faster when demonstrated.

• Course content is designed by considering current software testing technology and the job market.

• Practical assignments at the end of every session.

• A practical learning experience with live project work and examples.

• Learn the advantage of the option

• Put Option – Seller Perspective

• Options Chain – Seller Perspective

• Live Trading Example

Put Option-Buyer's Perspective

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What you will learn

• Introduction to the sale of the call option
• Call option - seller perspective
• Options chain - seller perspective

Rating: 0

Level: Beginner Level

Duration: 37 mins

Instructor: Trade2 Financial education