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Tagged with short-selling put
3 questions
17
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8
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Why do institutional Traders prefer Short Selling instead of Buying Puts?
Why is it more common for Institutional Traders to short sell stocks when they have a bearish stance instead of Buying Puts? The limited loss potential of Buying Puts seems like a better choice.
- 355
0
votes
1
answer
68
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Is this the present value of a short position on an option?
Consider a European put option, whose price at time $0$ is $\Pi_0$.
Set:
$$\mathcal{L}_0=\Pi_0 - P(0,t_M)\Pi_{t_M}$$
where 0 < $t_M$ and $P(0, t_M)$ is the discount factor from time $0$ to time $...
2
votes
4
answers
338
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How to short an option?
It appears to me that retail investors can only buy calls and puts, but not short them through any standardized way (except maybe borrowing the option from a friend ;) ).
Is that correct, or how can ...
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