Skip navigation

Current DateTime: 01:32:22 27 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 01:32:22 27 Nov 2009
LinksList Documentid: 33793611
  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?


Current DateTime: 01:32:22 27 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Use Put Options to Trade Negative Moves: Analyst
By: CNBC.com | 10 Oct 2008 | 12:30 AM ET
Text Size

These grim markets have most investors praying for capitulation. You need a strong stomach to venture against the downward market trends, especially when everyone else is fleeing to the traditional safe havens of gold, Treasurys and of course cash.

But if you're willing to take the risk, how can an ordinary investor trade on negative moves? Use put options, Ron Ianieri, chief markets strategist at the Options University tells CNBC's Asia Squawk Box.

Put options give you the right, but not the obligation, to sell a specific security by a certain time, at a specified price.

(See Ron Ianieri's full explanation of put options on the left)

"So for instance, if I want the right to sell IBM at $90 a share, I can buy the IBM $90 strike put. Now, if IBM falls to below $90, to $70 ... $60 ... $50, I’m going to still have the right to sell it to someone at $90. When IBM is trading at $40 and I have the right to sell it at $90, that gives me a value of $50," Ianieri explains.

"And if I purchase that put, obviously for less than that, then I’ve taken advantage of a drop in IBM by owning that put and exercising my right to sell that security to someone else at $90 while trading at $40," he adds.

Charting Asia

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • These four sectors will be the next to lead the market.
  • Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
  • T shirt man
  • From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
  • It may be the most unusual guide to business you'll read.
  • Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
  • "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
ADD COMMENTS
Remaining characters


Current DateTime: 06:14:06 27 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 09:11:30 27 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 10:38:14 27 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 07:56:29 27 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters