Jump to content

Buying put options not what I expected

Guest Chuong

Recommended Posts

Guest Chuong

Hello fellow IG investors, I recently bought some put options un my demo account to learn how to trade options. I set my strike price accordingly and after a few days the price of the stock dropped. Assuming that I would be making money on this put option if the price is below the strike price however the p/l is still showing negative amount on this trade.  Am I understanding how put options works or is this some sort of error? 

Thank you.  

Link to comment

Its not the premium, as you dont actually pay/receive premium on a spreadbet. But the bid/offer can be quite wide, check the buy price now vs the price your paid.

Factors that will impact your option price, other than price.

Vol: If implied vol drops, you will lose PnL

Time: The value of your option will decrease each day, this is most potent near expiry.

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
  • Create New...