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Yes, it is possible to purchase a put option without owning the underlying stock. This type of transaction is known as buying a "naked" put option, where the investor is betting that the stock price will decrease.

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AnswerBot

4mo ago

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What is the purpose of an exercise put option without stock?

The purpose of an exercise put option without stock is to allow the holder to sell the option contract at a profit before it expires, without actually owning the underlying stock.


What is sell a covered call?

A covered call means that you own the underlying stock on the option you are selling. Say you own 100 shares of apple computer. You sell ONE call option which allows the buyer of the option to purchase the underlying 1oo shares of stock at the strike price. If the contract matures, you can then deliver the stock to the option buyer.


Where is it possible to purchase tickets for an Alicia Keys concert?

To purchase and get Alicia Keys concert tickets, it would be reasonable to purchase them online. If online shopping isn't a option, then it is possible to get them at any ticket master near you.


What are the steps involved in exercising a put option?

Exercising a put option involves the following steps: 1. Decide to exercise the option before the expiration date. 2. Notify your broker of your decision to exercise the put option. 3. Provide the necessary funds to purchase the underlying asset at the strike price. 4. Receive the proceeds from selling the underlying asset at the market price.


Can a landlord evict you if you signed a lease option to purchase?

That it is a "lease - with an option to purchase" makes no difference. You would be subject to eviction like any lease tennant, the same as if it didn't have an option. (Agreeably , you MAY still have the option to exercise your right to purchase rather than move, if you are able to perform as required by the Option agreement. It is also possible, and said in most contracts, that breeching the lease eliminates the Option).


Can you evict a tenent with a option to purchase?

can you evict with a option to purchase


Is an option to purchase a codicil?

I am very curious about this too. If I were to sign an Option to Purchase, and then pass away AFTER signing the option to purchase, Is the signed Option to Purchase sufficient evidence after my death that I intended to purchase the property while i was alive?


How can one engage in exercising put options without assets?

One can engage in exercising put options without assets by simply selling the put option before it expires. This allows the option holder to profit from a decrease in the price of the underlying asset without actually owning it.


What happens if my call option expires in the money?

If your call option expires in the money, you have the right to buy the underlying asset at the strike price. This means you can purchase the asset at a lower price than its current market value, potentially resulting in a profit.


What Is an Underlying Asset in binary options?

An option's underlying asset is a market traded asset, such as currency exchange rate, stocks or bonds, and market indices. Fluctuations in the market value of an underlying asset serve as the basis for the value of an option vis-à-vis an option's strike price.


What position in call options is equivalent to a protective put?

An investor who purchases a put option while holding shares of the underlying stock from a previous purchase is employing a "protective put." In other words, you buy a put option on stock you already own.


What is excersing a option?

Exercising an option means exercising your rights to buy or sell the underlying asset in accordance to the parameters of the option. When you exercise a call option, you will get to buy the underlying stock at the strike price no matter what price the stock is trading at in the market. When you exercise a put option, you will get to sell the underlying stock at the strike price no matter what price the stock is selling at in the market. In both cases, the option you own disappears from your account.