April 2025

Put options allow the holder to sell a security at a guaranteed price, even if the market price for that security has fallen lower. Since the put option is now ITM, the investor has to decide whether to (a) exercise the option, which would confer the right to sell 100 shares of SPY at the strike price of $545; or (b) sell the put option and pocket the profit. The extra $0.35 is time value, as the underlying stock price