Introduction to Selling Put Options

Information needed

Definition of the Put option on the chart

Scenarios of a decline in the price of the underlying asset

Additional nicknames for options seller

A put option from the real estate world

High premium for time value

Important key points for selling a Put option

What will we learn in part 2?

Call seller's premium curve

Put seller's premium curve

Options at the money, outside and inside the money as a put option seller

Volume in the options chain

Open Interest in the options chain

Open Interest and volume in different maturities

Intrinsic value from the point of view of the Put option seller

Extrinsic value from the point of view of the Put option seller

Implied volatility and sells a Put option

Market Sentiment and Implied Volatility

Summary of what we learned in chapter 2

The 4 strategies in the box

Creating a buy of a synthetic stock with options

The profit or loss if Apple stock goes up

The profit or loss if Apple stock goes down

Creating a synthetic short position with options

Added 2 put option to synthetic short

Adding a put option to protect the long stock

Adding 2 put option to protect the long stock

Protection of a short position with the help of call options

Summary of Chapter 4 - The Four Legs

Chapter 4 Quiz: Summary of the Four Legs