I want to use put options on stocks using online broker services um and one know about this and how i can do put options on companys that suck!? or if im just dumb, guide me in the right direction thanks!!
2006-12-05 23:46:58 · 3 answers · asked by Sam 3 in Business & Finance ➔ Investing
You can indeed buy put options on certain stocks. Not all traded stocks have options available, mostly only the more heavily traded stocks. There are however a great many available. The problem with buying options is that about 80 to 90% loose money. The market is very efficient at pricing options and in the case of a put option for example, the more likely the stock is to fall in price the higher the premium that you will have to pay for the option.
For example INTC April 2007 put 20 is currently trading at 0.85 with the stock price at 21. So the stock would have to fall to 17 1/2 before you would make a discerable profit. About a 17% drop in price.
2006-12-06 02:30:27 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you think bad about some companies think good about them and you will be OK. Put options are not sten guns to distroy companies and it won't do what you expect it to do, if I have gussed you right.
2006-12-06 03:22:41 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋
The company that sucks means its of no use.Then why ur keeping with u.just keep few so that if any thing will happen it will not effect u .So dont keep all sucks company .
2006-12-05 23:52:13 · answer #3 · answered by Mehbooba 4 · 0⤊ 0⤋