{"id":12756,"date":"2023-04-20T15:56:34","date_gmt":"2023-04-20T07:56:34","guid":{"rendered":"https:\/\/pff.awseyun.com\/?p=12756"},"modified":"2024-12-12T19:37:53","modified_gmt":"2024-12-12T11:37:53","slug":"call-and-put-options-buying-selling-guide","status":"publish","type":"post","link":"https:\/\/pff.awseyun.com\/index.php\/2023\/04\/20\/call-and-put-options-buying-selling-guide\/","title":{"rendered":"Call And Put Options: Buying & Selling Guide"},"content":{"rendered":"

\"meaning<\/p>\n

Perhaps the investor doesn\u2019t believe ABC stock will necessarily decline that far. The higher strike creates a higher breakeven \u2014 but also requires a higher price. The near-term $90 put option costs only $2; the 100 strike (known as \u2018at the money\u2019) could cost $7. That option breaks even at a higher level \u2014 ABC must only decline to $93 against $88 for the $90 strike \u2014 but offers lower rewards. For example, ABC might be releasing quarterly earnings in two days \u2014 and our investor believes the market will react poorly to the report.<\/p>\n<\/p>\n