As such, you'll pay $385 to purchase one put option controlling 100 shares of XYZ (3.85 premium x 100 shares). Conversely, selling the same amount of stock short theoretically has you on the hook ...
In other words, put options can be used to profit from a stock's decline -- somewhat akin to a short-selling strategy, albeit with a more conservative risk profile. While put options are most ...
Explore how combining directional trades and volatility plays using Natural Gas Weekly options can effectively hedge against price fluctuations and maximize profits.