Put Options
This query is : Resolved
Simran Chhabra
(Querist)
04 November 2022
Hey!!
Can someone explain to me the short put options graph with the example of a shareholder??
I am an economics student. I have understood the graph with the example of an insurance company but cannot understand it with that of a shareholder.
Also, if possible can you also clarify the difference between short and long positions?
Thank you so much!!
Can someone explain to me the short put options graph with the example of a shareholder??
I am an economics student. I have understood the graph with the example of an insurance company but cannot understand it with that of a shareholder.
Also, if possible can you also clarify the difference between short and long positions?
Thank you so much!!
CA R SEETHARAMAN
(Expert)
04 November 2022
A short call is an options position taken as a trading strategy when a trader believes that the price of the asset underlying the option will drop. Therefore, it's considered a bearish trading strategy. Short calls have limited profit potential and the theoretical risk of unlimited loss.
A long call option is, simply, your standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future. The advantage of a long call is that it allows you to plan ahead to purchase a stock at a cheaper price.
A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock.
A long call option is, simply, your standard call option in which the buyer has the right, but not the obligation, to buy a stock at a strike price in the future. The advantage of a long call is that it allows you to plan ahead to purchase a stock at a cheaper price.
A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
