A put spread is a strategy that involves buying and selling put options on the same stock simultaneously, though not necessarily at the same strike price. In a bullish put spread, you would sell put options at the higher strike price and buy put options at a lower strike price. It is a...
What is a put option? A put option ("put") is a contract that gives the owner the right to sell an underlying security at a set price (“strike price”) before a certain date (“expiration”). The seller sets the terms of the contract. The buyer pays the seller a pre-established ...
A protective put is a type of aput optionstrategy that helps investors limit their maximum losses from owning a stock. This strategy is often employed by investors who are bullish on a long-term price rise for a stock but bearish over the short term. ...
Let's pick the highest probability and high return Bull Put Vertical Spread entry points.By combining Long Days and Upside, out of all bullish stocks that started within 2 trading days, FB is extremely undervalued with 97% upside. So it has a high probability of a bullish trend....
Bearish markets use that same 20% threshold to determine when they take place. "A bearish market is the inverse of the bullish market characteristics described above. It can generally be defined as a decline of 20% in asset prices from the previous peak," Spinelli explains. ...
A bullish engulfing pattern is one of the most reliable candlestick patterns you can use to predict future price movements.
Long call: A long call is a buyer’s bullish bet on the price of a security. When buying a long call, you assume that an underlying stock price will continue to go up well beyond your strike price. You pay for a call option under the assumption that the underlying asset's market pri...
Naked Short Put: Involves selling a put option without a corresponding short position in the underlying stock. If the stock price falls, the seller may incur substantial losses. Risk Profile: High risk due to the unlimited loss potential. The maximum profit is limited to the premium received. ...
A put option (or “put”) is a contract giving the option buyer the right, but not the obligation, to sell—or sell short—a specified amount of an underlying security at a predetermined price within a specified time frame. This predetermined price at which the buyer of the put option ca...
A put is an options contract that gives the owner the right, but not the obligation, to sell a certain amount of the underlying asset, at a set price within a specific time. The buyer of a put option believes that the underlying stock will drop below theexercise pricebefore the expiration...