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#509 - How Much Does It Cost To Buy A Put Option?
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:04:23
- More information
Informações:
Synopsis
Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer a question which is – “How much does it cost to buy a put option contract?” Now, this answer obviously depends on the ticker symbol that you’re trading, how far you are from expiration, the implied volatility, the liquidity, the activity in the option contract that you’re trading. There's a lot of things that kind of go into this, but I want to do is just kind of show you broadly the range that you could potentially find yourself in for buying a put option contract. As a reminder, we generally do not suggest that you buy option contracts. As long-term, it's a net-net losing investment compared to selling options or selling option strategies. Even risk defined option strategies do a better job of mitigating risk than buying a put option contract. But put options can be widely variable in price. I’m just looking at an option chain right now for Google which is ticker symbol, GOOGLE and the at