Put Option | Options Trading Concepts

A put option gives the owner the right, not the obligation, to sell 100 shares of stock at a certain strike price and expiration. In this segment, Mike walks through all the basics of a put option! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Click the link below to learn more: http://ow.ly/Y0zXE Follow: @doughTraderMike Use the hashtag #whiteboard to discover more options trading concepts! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Only comment that confuses me at 6:05....."Because we have that limited profit and tying that together with the UNLIMITED LOSS, we have a higher probability of success" Huh? Please explain. If you don't cover or protect from the prospect of UNLIMITED LOSS...you not only eliminate success, but you have potential for UNLIMITED LOSS. What am I missing??
   
   Are you basing probability on the possible actions of the stock price (up, down, same) and mean that because you win if it does two of those, that probability is on your side? While that is true, isn't it dangerous to assume or remove the probability that the stock price could plummet from the equation?
2. Great video and explanation; nice pace.
   
   Recommended for rookie option traders
3. so when buying a put, say the current price of the stock is 100 you need a strike price below 100 but how come there are higher strike price? 101 102 103 104 etc
4. too technical.. but I followed.
5. what led zep song is this ?
6. Thanks Mike
7. completely confused me.. honestly what are you trying to prove here.
8. You had me sold at led zeppelin