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Put options explained: How trading puts pays off and when it doesn't
['Yahia Barakah', 'Tue', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
The put's value moves with the marketThree main factors move a put's price once the trade is open:Asset price: In our example, the put's value generally moves opposite to Nvidia's stock.
IV alone, even with the asset's value unchanged, can move a put's price.
Both can nudge a put's price a little.
How a short put worksThe price of a short put moves for the same reasons a long put's price does.
For example, an investor holding 100 Nvidia shares, currently at $212.26, wants to protect against potential losses.