Sentence examples for put option from high-quality English sources.

• A long put option is somewhat similar in strategy to short selling, aka shorting.

• In effect, says Mr Rosgen, this is like an “implied put option” on South Korea's worst companies.

• Four years after that, the C.B.O.E. introduced the “put” option—thus institutionalizing the bet that the thing you were betting on would lose.

• The results led Claire Kent, an analyst with Morgan Stanley in London, to issue a report in which she asserted that the $85.52 put option ''greatly underestimates Gucci's true value'' -- provided, she added, that current management stays in place.

• In a sense, a long put option is a sort of a short position, in that you're betting a stock's price will sink in the future.

• The strategy involves simultaneously buying a cheap out-of-the-money put option while writing an out-of-the-money call option.

• What was left was essentially a put option, which gave investors the right to force UBS to buy the banks' shares at a set price.

• Conversely, buying a put option means that you're counting on the price of the Big Tech Company falling before the expiration date.

Use put option in a sentence.

• A long put option can also serve as a hedge, or insurance, against a bad outcome with a long call option or an outright purchase of stock.

• Investors leveraging a protective put often buy a put option with a strike price equal, or close to, the current price of the asset that they already hold.

• What he recommends: Buying a "put spread collar" on the S&P 500 by buying a cheap out-of-the-money put option while writing an out-of-the-money call option.

• The embattled car maker tried to quash speculation that it was preparing for a takeover by General Motors even before 2004, when Fiat can exercise a put option.

• In addition to being less risky, long options also include an unlimited profit potential to the upside in the case of a long call option or the downside with a long put option.

• Analyst comment: "In March 2020, at the start of the COVID-19 pandemic, the cost of a 95%-strike one-month put option on the S&P 500 surged from 0.5% to 7% in less than a month.

• This approach became known as the “Greenspan put” (Alan Greenspan was the chairman of the Fed from 1987 to 2006, and the put option is a form of insurance against falling prices).

• They zeroed in on the earnings-linked straddle, a strategy that involves picking a stock and simultaneously buying its call and put option with the same expiration date and strike price.

put option sentence examples

• If the stock rises above the strike price, the put-option holder (who bet it would fall) will let the option expire, letting the option seller walk away with the premium.

• In the case of naked calls, this involves selling a call option without already owning the underlying security, while in the case of naked puts, it involves selling a put option without short-selling the security.

• The non-recourse status of mortgages in large parts of America, for instance, gives the borrower a highly attractive put option: he can, in effect, sell the house to the lender at any time for the principal outstanding.

• Investors receive a minimal yield on the initial investment as they wait for a sponsor to identify a target and then have a put option to redeem their shares with accrued interest if they do not like the acquisition, Kostin said.