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The POST method can be used for sending partial updates to a resource. The main difference between the POST and PATCH methods is that the POST method can be used only when it is written to support the applications or the applications support its semantics whereas the PATCH method can be used in a generic way and does not require application ...
Put option: A put option gives its buyer the right, but not the obligation, to sell a stock at the strike price prior to the expiration date. When you buy a call or put option, you pay a premium ...
A call option on a stock index gives you the right to buy the index, and a put option on a stock index gives you the right to sell the index. Options on stock indexes are similar to exchange-traded funds (ETFs), the difference being that ETF values change throughout the day whereas the value on stock index options change at the end of each ...
Investors can use options to hedge their portfolio against loss. Also, they can help buy a stock for less than its current market value and increase gains. Call vs put options are the two sides of ...
Naked Put Potential Return = (put option price) / (stock strike price - put option price) For example, for a put option sold for $2 with a strike price of $50 against stock LMN the potential return for the naked put would be: Naked Put Potential Return = 2/(50.0-2)= 4.2% The break-even point is the stock strike price minus the put option price.
Some stockholders sell call options against their stock positions or write put options as a way to create income. Such strategies can be attractive and relatively low-risk ways to use options.
Price of the underlying: Any fluctuation in the price of the underlying stock/index/commodity obviously has the largest effect on the premium of an option contract. An increase in the underlying price increases the premium of call options and decreases the premium of put options. The reverse is true when the underlying price decreases.
In the financial world, options come in one of two flavors: calls and puts. The basic way that calls and puts function is actually fairly simple. A call option is a contract giving you the right to...