Jump to content
  • 0

Buying PUT


Guest FRC

Question

1 answer to this question

Recommended Posts

  • 0
On 16/11/2019 at 00:16, FRC said:

Hi

I bought PUT options for $320 and the current price is showing $305.

Does that mean I am in profit or loss?

Hey @FRC- thanks for your feedback message.

I can see why this can be a little confusing. When buying a put you want the underlying market price to go down. However, the option is priced depending on how likely is to settle below the strike price. If it's very likely the option will be priced high, if it's not likely then the price of the option will be lower.

If the price at which you bought the put option is higher than what the put option sell price is at now it's not good for your position, it's more than likely that the underlying market price has increased. If you were to close the option out at $305 it means you would lose ($320 - $305) x size. 

If the underlying market price has moved down you should see that the option price normally moved up because it's more likely that at expiry the market price will settle below your strike price. 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • It is a consensus that Web3 wallets offer users whole control over their assets, ensure protection against unauthorized access, deliver seamless access to the growing world of blockchain services and more. However one quality that many participants are yet to tap fully is the earning opportunities they unlock. So in my exploration to access those juicy opportunities, I’ve discovered quite a few on Bitget wallet. Earned good rewards from the previous ZETA airdrop, and now in line with offering an unparalleled rewarding trading experience in Web3, Bitget Wallet has launched a massive airdrop for its ecosystem token BWB. Scheduled to last from March 18 to April 28, participants are invited to download Bitget Wallet app on their devices and claim BWB by participating in events through the app—the more tasks completed, the more points you gain. I just think that considering that 164m BWB points have already been issued over the period of 5 weeks, with one more week to go, no better time to hop on this opportunity than now especially with a welcome bonus of 50 $BWB points up for grabs!
    • this sounds like an amazing opportunity for users in the crypto world. It's important to approach futures trading competitions with caution, ensuring one's financial stability and a comprehensive understanding of the market. While the prizes are enticing, responsible trading remains the ultimate goal. Thanks for sharing such an intriguing event, I’ll definitely be taking a look at it ! 
    • As a newbie crypto trader, I dove headfirst into the world of futures trading on Bitget. Feeling overwhelmed by the charts and analysis, I discovered their copy trading platform. It was a revelation! Following the strategies of Bitget's elite traders, I learned the ropes while making real profits. Their expertise took the guesswork out of trading, allowing me to focus on understanding the market. This new Bitget Futures Elite Trader Selection Program is fantastic news. It incentivizes these top traders, giving them greater exposure, while also helping new users like myself identify proven performers. It's a win-win for everyone, and a huge step forward in making futures trading more accessible and successful for beginners. Thanks Bitget!    
×
×
  • Create New...
us