Stock Option "PUT" Calculation

Another Stock Option Buying strategy is the "Put Option"! When buying this type of option, the buyer of a Put Option is expecting the price of the stock to go down (trade lower). As the overall stock price goes down, the price of the PUT OPTIONs generally "goes in reverse and trades higher". In the example below, the actual Stock Price for GS (Goldman Sachs Group) started to trade down on negative comments about the financial sector. The Stock price was around $150, and after a few days the stock price had traded down to under $146. The GS JUN 150 PUT Option was priced at $4.50 before the share price started to decline on the news. As the actual share price traded down, the GS JUN 150 PUT Option value traded up. Within a few days the GS JUN 150 PUT Option value had traded up to over $6.75! As you can see by the PUT Option Calculation Screen below, just "5" PUT Options would have been a great buy opportunity! That's the value of using the "PUT Option" strategy when you expect the stock price of a company to be trading down! Using the "Stock Options Calculation" Feature of my Program makes all of these type calculations simple and easy to calculate! Here's the actual screen! Return to Program Advantages/Features!