Put Options Help


I can’t seem to wrap my head around how puts / calls work. I have a stock in mind that will likely be falling rapidly Tuesday, and I want to make money off that fall. How exactly would I go about that with a put option?

Like if the current stock price is $10, and I expect it to drop to $8 for example. I would buy a contract saying I can sell the stock at $10? Also how does this net you more money than buying a stock low and selling high? I’m not sure how people make/lose so much with options.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *