American put options | Finance & Capital Markets | Khan Academy

American Put Options. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/call-option-as-leverage?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/basic-shorting?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. It is really hard to follow without showing your cursor.
2. Sal, most of your videos are stellar, but this one is just awful. Thankfully I already understand how put options work.
3. sal you made it more complicated
4. even if you can sell it, who would buy it? 
5. *Correct me if I am wrong cause I never participating in the casino arena of investing in stocks while excercising options, but I thought puts were used by people who don't necessarily own the share itself but borrow others (naked shorting) in hopes that the price goes down on the stock, and they technically sell at the higher price, but technically buy it at the lower price and profit the difference? Isn't this how most puts are used today instead of as an insurance program?? Also isn't this kind of like an immoral game when played this way as it often results in many stocks being hammered which affects other share holders as well because those who own many shares and have the financial means to manipulate the markets can often swoop in and cause this ripple effect to occur almost instantly. Also at the same time this kind of manipulation is allowed to happen freely, with not much oversite. This behaviour makes me question if integrity, and honesty, and true value exists anymore, and if share prices are based on any real true measurable value based on companies actually creating more value for their customers or based simply on irrational and intentional immoral behaviour of market movers and shakers? Makes me want to stay clear of the casino world of stock investing. I much rather invest in main street than wall street where my money actually does good for my community*
6. ...wat.
7. Is this a naked put?
8. Totally agree haha
9. This is a joke! You missed it Whoever left me a comment! Now... back to "Kahn!"
10. I learn so much more from Khan's videos than from those Investopedia videos where the guy talks like an auctioneer and that spastic music plays in the background
11. Its not as complicated as you're making it sound.
12. Gazelleone dollar
13. no music, and first comment