answersLogoWhite

0

It's a predictor of price trends in a stock. You can tell the direction The Street thinks a stock will go by comparing the number of outstanding puts and calls.

Buying a put means you think the stock will go down. Conversely, buying a call means you think it will go up. If a lot of people are buying one option over the other, there's probably a reason for it.

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

Call option and put option?

A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.


What is the origin of the words Call and Put when trading options in the stock market?

These terms have been used since the beginning of options back in the tulip mania days more than a hundred years ago. The basic idea is to "Call From You" your stocks or to "Put To You" my stocks.


What are the factors that affect currency put option and currency call option premiums?

go to yahoo stocks


If you own stock can you write a put option for it based on the bid ask prices other investors are willing to pay for the option?

When you own stock, you can give other investors the right to BUY those stocks from you by selling CALL OPTIONS, not put options. This is what is known as a Covered Call options trading strategy.When you sell put options, you are giving investors the right to sell to you stocks at a fixed price. In this case, it will have nothing to do if whether you already own those stocks.


What does stocks attendant for there town?

the stocks attendant watches over people who have been put in the stocks as a punishment


Why did the Tudor's get put in the stocks?

Tudors got put in the stocks if they kissed a baby on the head while standing on one foot


Is with regards correct grammar?

yes. After with regards you would put your name.


How do you play options?

Playing options is as simple as opening an options trading account and then buying call options for stocks you think will go up and buying put options for stocks you think will go down.However, that is only the mere basics. There are almost endless ways to play options through combining options of different strike prices and expirations; what we call Options Strategies.


Can anyone solve this derivative question - piesinpiexx1-x 4 for each x belongs to 01?

We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba


What are the top ten best stocks to put money in?

There are many stocks to choose from and stocks are constantly fluctuating. Some of the best stocks to invest your money in are Google, Apple, Facebook, Yahoo, Comcast, Moody's Corporation, SPDR Gold Trust, Gilead Sciences, Boeing, and Cameron.


How do you collect money from stocks on neopets?

click the little arrow next to it then click sell dont forget to put int he amount of stocks you want to sell


What is 620 over 31 equal when you put it as a ratio?

As a ratio it would be 20:1