2 ms·
> The option price itself is not that meaningful. Except it's literally what determines how much money is at risk in the trade. If you buy puts the actual unde
by weird-eye-issue 1y ago
> The option price itself is not that meaningful.
Except it's literally what determines how much money is at risk in the trade. If you buy puts the actual underlying asset value doesn't matter as much as the value of the option itself (which is based on several factors such as time, strike price, etc)
- jb1991 1y agoThe amount of money that is at risk with options is irrelevant because two different option positions with the same overall cost can have completely different risk profiles, which makes the actual value of those options not so interesting. In the absence of all the other details about the options trades, the actual amount paid for them is without much meaning.