26th November 2019

investorplace
13

Is buying a put short selling?

The alternative to shorting is to buy put options. A put gives you the right, but not the obligation, to sell the underlying stock at the strike price on or before expiration. Buying a put allows you to lease the downward price movement of a stock.

Also know, what does it mean to short a put option?

Short Put. A Bullish options strategy that involves selling short or "writing" a put option. When the stock rises above the strike price of the short put by expiration, the put options expire worthless and entire premium from its sale is earned.

Can you short sell an option?

A Short Call means selling of a call option where you are obliged to buy the underlying asset at a fixed price in the future. This strategy has limited profit potential if the stock trades below the strike price sold and it is exposed to higher risk if the stock goes up above the strike price sold.
Write Your Answer

Rate

100% people found this answer useful, click to cast your vote.

5 / 5 based on 1 vote.

Bookmark

Press Ctrl + D to add this site to your favorites!

Share