Way to go Mini Mochibot - it's a shame the person you responded to has no idea what you're talking abount
I agree, they should not be trading options whether they be puts or calls. It a shame people first don't learn what to do, why they'er doing or how to do it before they try to do it
Beginner options traders should never go straight to Put options.
I suggest you do not delve into options trading. You don't know enough about it to take the risk.
Even if you think an instrument will go up or down, the biggest problems with options are delta and theta. Those two factors can cause your options contracts to lose value, even if the underlying instrument is going the right way.
Go to Investopedia, and read into how options work, before trading them.
On a side note, options ARE contracts. I'm not sure what you're talking about.
The strike price is the price you believe the underlying instrument will head to, prior the expiry date arriving. Simply put, if the contracts near expiry, and the strike price has not yet been reached, and investors believe it'll never be reached in time, your contracts' value will essentially drop to zero.
Watch the movie Wallstreet.
Pro tip- don't watch the Shia La Beouf one.
When you know the price of a scrip is going to fall, its better to short sell that stock. But in my country the exchange allows short selling only for intraday. I cannot hold on to that position for couple of days. But I came across some articles on the internet that its possible to short sell and hold for couple of days or until its expiration, by buying a put option. Although I have never traded in futures but I know that there must be a contract in futures to trade.
So what about put options?
Can I buy a put option even if there is no contract?
As I have seen in futures that some Scrips did not have any contract.
And what is the strike price? Is it the price I'm going to buy and later sell on the same price?
