Category Trading Strategies

Put Options Trading Strategies: Stock Hedging and Speculation

When should you sell Put options? When should you buy them? What are the risks and rewards of stock options trading?

Buying, selling, and trading Put options in the stock market is similar to the real estate market. To understand Put options and the comparisons drawn in this article, you may want to read this one first.
To sum up the main points of the analogy, the housing market is like the stock market. Housing units are like publicly traded shares. There may be brokers, speculative buyers, and the owners of the units. A Put option contract is simply an agreement to buy shares (or a house) if the market drops to a certain value...

Read More