04-04-2020, 11:46 AM
(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS
Was thinking of buying PUTS in XOM. $37 strike price
I never bought options in my life lol. How does this worK?
I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00
So my cost would be 100 x $6.00 = $600 correct?
And if the stock were to trade below $37 I would be in the money? If it goes under $37 before the expiration can I still sell for a profit?
What is a buy open, or sell open??
How do I profit from puts ??
Sorry I'm a rookie lol
You definitely will want to learn more about them and "paper trade" them before putting actual money at risk. I use options very sparingly, maybe 2x per year.