How can a put expire ITM and still lose money?
- Thread starter 1a2b3cppp
- Start date
1a2b3cppp,
Of course a put can lose money even if it is ITM for example if you pay $400 for it, and it finishes $1 ITM, you would lose ~$300.
The only thing I would say is that some people might (incorrectly) say their put is "in the money" when they are profitable, but it is not actually ITM yet.
For example if XYZ was at $50, and a person bought a $45 strike put for $200 - a week later XYZ is at $46 and the put is $350. The person talking in a bit of slang might say their trade (their Put) is in the money (even though the put is out of the money still).
Thats the only way I can figure someone could think that ITM automatically means profitable
JJacksET4
Of course a put can lose money even if it is ITM for example if you pay $400 for it, and it finishes $1 ITM, you would lose ~$300.
The only thing I would say is that some people might (incorrectly) say their put is "in the money" when they are profitable, but it is not actually ITM yet.
For example if XYZ was at $50, and a person bought a $45 strike put for $200 - a week later XYZ is at $46 and the put is $350. The person talking in a bit of slang might say their trade (their Put) is in the money (even though the put is out of the money still).
Thats the only way I can figure someone could think that ITM automatically means profitable
JJacksET4
On one school of thought, I say, LOL - that's a lot of posts for such a question.
On the other hand, we all were once a novice and didn't know a put from a call. If everyone was a superior trader out there, then how could anyone else make money? Let's try to be humble and let him realize the answer to his question. That's a hard thing to do knowing ET though.
On the other hand, we all were once a novice and didn't know a put from a call. If everyone was a superior trader out there, then how could anyone else make money? Let's try to be humble and let him realize the answer to his question. That's a hard thing to do knowing ET though.
This has alot of things to do while that put is not profitable. There's no time decay. There's no Volatility on the contract so now it perfectly rely on intrinsic value to do the job which is not. But in order for me to make a correct decision on why that contract ain't profitable you need to provide a little more information.
How'd you get through security?
