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Buying PUT options is equivalent to shorting i.e. the more the stock price goes down, the more money you make. Selling PUT options is equivalent to being long
by kjksf 2y ago
Buying PUT options is equivalent to shorting i.e. the more the stock price goes down, the more money you make.
Selling PUT options is equivalent to being long i.e. the more the stock price goes up, the more money you can make.
The OP seems confused.
- vasco 2y agoYou make the most money on a PUT you sold if it stays above strike, it doesn't have to go up at all for you to make 100% of the possible profit of the trade. You just wait as it goes to zero. The example was to show how to profit off of something staying flat.