Introduction to Put Options

Put Options are the ultimate protector of a portfolio. Puts increase in value when the stock goes down.

Introduction to Put Options

The Put Option is the ultimate "protector" of your portfolio, and in this course you can learn how Put Options work. It is the exact opposite of a Call Option. Put Options increase in value when the value of a stock or index drops in price. We define what a Put Option, and just like we did in the Call Option, we consider a real-world example of a Put Option. Fortunately, we have excellent examples of Put Options in real life - when we buy Insurance for our car or home, we are actually buying a Put Option. This example should make it absolutely clear what a Put Option is. The course looks at buyer and seller perspectives in a Put Option transaction, and analyzes the breakeven, and profit and loss profiles, all using the real world example first.

What you will master

  • Learn Put Options using simple real-world examples
  • What is a Put Option and how is it the opposite of a Call Option
  • Why is a Put Option the "ultimate protector" of your portfolio
  • A real world example of a Put Option we are all familiar with
  • How Put Options make money in bear markets
  • Buyer and seller perspectives of Put Options
  • Breakeven analysis and Profit and Loss graphs for buyers and sellers
  • Compare the real world Options to Options in the financial market
  • Study AAPL Put Options in detail

Put Options - I
Put Options - II
Put Options - III

What's included

  • 3 Video Lessons

  • Works on all devices
  • Certificate of completion

Hari Swaminathan