Beginners' Guide To Put Options (Part 2 of 2) | Why Does The Value Of A Put Option Change?

In the 1st part of this Beginners' Guide To Put Options series👨‍🏫, we shared an analogy of Jerry using the concept of put option to 'protect' the profits for selling his house. The value of the put option he bought stays constant throughout, but this is not the case for the put options in the financial markets.

In the 2nd part of this series, we will be sharing with you why and how the value of put options in the financial markets fluctuate. We will also be sharing why investors would want to buy put options.

Disclaimer: The video is solely an educational series on how put options work from the buyers' perspective for beginners to understand better about options. This does not constitute as a recommendation or endorsement of any particular options strategy.

Original video was posted on The Joyful Investors' YouTube Channel (https://www.youtube.com/c/TheJoyfulInvestors)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment21

  • Top
  • Latest
  • snuggix
    ·2021-12-21
    I have obtained very good income through sell put, and I am still very stable, and I intend to switch from the seller to the buyer
    Reply
    Report
    Fold Replies
    • Hazelle_TJI
      It depends on the situation for the appropriate option strategies to use! [Smile]
      2021-12-22
      Reply
      Report
  • jinxie
    ·2021-12-21
    Buying puts is a good short-selling strategy, but selling puts is also a good bargaining strategy, and you can take orders at a lower price.
    Reply
    Report
    Fold Replies
    • Hazelle_TJI
      All strategies have its desired outcome to achieve, so it depends on the situation on what to use! This sharing is not a recommendation of any put option strategies, just a guide for learning put 🙂
      2021-12-22
      Reply
      Report
  • village5576
    ·2021-12-21
    Is the biggest risk of put options the premium for the buyer?
    Reply
    Report
    Fold Replies
    • Hazelle_TJI
      The maximum loss for buyer is the option premium paid.
      2021-12-22
      Reply
      Report
  • Luckygim74
    ·2021-12-25
    Thks for sharing
    Reply
    Report
  • winky9
    ·2021-12-21
    I like to be an option buyer very much. Although there may be the risk of losing the principal, the return is unlimited, and the maximum loss is determined in advance.
    Reply
    Report
  • MarsBloom
    ·2021-12-21
    Time is the biggest killer of options, you need to be cautious when buying options
    Reply
    Report
  • qixoo
    ·2021-12-21
    Thanks for sharing, I have a deep understanding of put again, and hope to have more options teaching videos
    Reply
    Report
  • blimpy
    ·2021-12-21
    Buying puts is indeed a good choice for shorting stocks, but it is usually more demanding for timing
    Reply
    Report
  • Jason_LSE
    ·2022-01-10
    Will be helpful to create some "Sell Cash Put Option" videos on Tesla or Pltr . Thks so much.
    Reply
    Report
  • wubbix
    ·2021-12-21
    It's really hard to really understand call options. Thank you for sharing!
    Reply
    Report
  • OutsiderLEO
    ·2021-12-21
    The buyer's winning rate is low, but once successful, the benefits are usually very substantial
    Reply
    Report
  • TomCap
    ·2021-12-21
    As time goes by, the time value of the option will gradually return to zero
    Reply
    Report
  • FangZH
    ·2022-03-27
    Great ariticle, would you like to share it?
    Reply
    Report
  • ud0m
    ·2022-02-17

    Did I shared this?

    Reply
    Report
  • sy1
    ·2021-12-23
    👍🏼
    Reply
    Report
  • Tsk88
    ·2021-12-22
    [Like]
    Reply
    Report
  • Luckygim74
    ·2021-12-22
    Good
    Reply
    Report
  • takamasa1867
    ·2022-02-08
    Jkk
    Reply
    Report