Are ‘puts’ the same as shorting, where you sell what you don’t have and buy back when the price drops? Did some spread betting and generally got the directions correct, but kept getting closed in short term rises, annoying. Nothing huge though just $1 a pip for fun. Only problem is you are glued to the screen lol.
Not really. Puts are contracts to buy/sell a stock at a certain price. You don’t have an obligation to execute the contract, so you can resell it. The only risk is what you pay in premium.
So if I buy a $35 put on Twitter, and the price is $27, it will be worth $800 (contracts are for 100 shares) at expiration.
Without getting too complicated, if the stock is not lower than $35, your contract expires worthless.
Too late
Are ‘puts’ the same as shorting, where you sell what you don’t have and buy back when the price drops? Did some spread betting and generally got the directions correct, but kept getting closed in short term rises, annoying. Nothing huge though just $1 a pip for fun. Only problem is you are glued to the screen lol.
Not really. Puts are contracts to buy/sell a stock at a certain price. You don’t have an obligation to execute the contract, so you can resell it. The only risk is what you pay in premium.
So if I buy a $35 put on Twitter, and the price is $27, it will be worth $800 (contracts are for 100 shares) at expiration.
Without getting too complicated, if the stock is not lower than $35, your contract expires worthless.
I almost did that myself
Came for the politics, stayed for the trades.
Yea like the analyst that came out the woodwork on the 13th to say a rebound to €60 was likely for Twitter.