
348- Betting with Options
InvestED: The Rule #1 Investing Podcast
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Buffet's Put Option
A put option is an insurance policy where one party is insured at a certain price, that they're going to get paid that price if the stock price drops below that price. So soa insured, and that's that's called a put option. But don't worry about the option language,. It's just t understand it as an insurance polly. That's one kind of option. But there's another kind of option, and I wanted to just talk about in reference to the sort of extreme risk side of things. The one that's out in the news is known as a call option, and it gives some one the right to call to to take your stock away. For both parties
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