What happens when put options expire in the money quote


Put money the options expire happens in quote when what


Please include your IP address in your email. A:Holding an option through the expiration date without selling does not automatically guarantee you profits, but it might limit your loss. An American-style option has no restriction. A put option is considered in the money if the strike price is higher than the current stock price. That is, the terms of the put contract are enforced such that you must sell the underlying shares for the strike price.

The stock closeBuying a put contract on a stock gives you the chance to make a large profit if the share price of that stock takes a dive. Puts give moeny the chance to turn a few hundred dollars or less into hundreds, possibly thousands more, if you guess right on the stock price. However, all option contracts, including puts, have an expiration date -- and you may need to take some action before your put expires.

Anatomy of a PutA put contract gives the put buyer the right to sell 100 hwen of the underlying stock at a preset price. The seller of the put must buy the share if the buyer chooses to exercise the contract. The defining features of a put are the specific stock, the exercise price (called the strike price) and the expiration date. Expiration comes on the third Friday of koney listed expiration month. Since a put covers 100 shares, the cost will be 100 times the quoted price.




What happens when put options expire in the money quote

What happens when put options expire in the money quote


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