
Is Inflation Finished? + United Airlines $15B Spending Spree
The Young Investors Podcast
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Buying and Selling Put Options at the Same Time
A put option is a contract that gives you the right, but not the obligation, to sell a stock at a set price. The trade has a pretty small maximum loss if the stock price ends outside of the two prices. You could do this trade with just three contracts of amazon stock and be down almost a million dollars. That doesn't mean your down nearly a million dollars. It just means that your account is negative for 3 days until you can settle it.
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