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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 could change before the option expires. If the strike price of a put option is $20, and the underlying stock is currently trading at $19, there’s $1 of intrinsic value in the option.

The decision follows MSCI’s earlier proposal to tighten the definition of free float – the number of shares available for trading and a key determinant of a stock’s weighting in benchmarks – for Indonesian securities. When trading resumed, some losses were regained and stocks closed down 7.4 per cent, the steepest decline in nine months. JAKARTA – Indonesian stocks sank on Jan 28 after MSCI raised concerns about their investability and warned of a potential downgrade to frontier-market status.

According to CNBC, European states are reportedly considering retaliatory tariffs and broader punitive economic counter-measures against the U.S. “The challenge is that we’re probably going to see prices rise gradually and it’s going back to that self-fulfilling (prophecy) and inflationary expectations becoming entrenched.” In comparison, they anticipate consumer price growth in Canada to stretch to more than three per cent this summer. JPMorgan analysts recently said the odds of a global recession have increased to 60 per cent. The S&P 500 was down more than 17 per cent from its mid-February high on Friday.

The “Assassin’s Creed” creator saw its stock sink 33% during a delayed start to trading leading losses on Paris’s SBF 120 indexes. “I am disappointed that we are not able to fully meet the demand in our markets,” Lip-Bu Tan, Intel’s CEO, said during a conference call on Jan. 22. Shares of Intel slid more than 16 percent in intraday trading on Jan. 23. The 8% drop in Tesla’s stock on January 27, 2026, serves as a wake-up call for the broader market. In an optimistic outcome, the Juniper refresh and a softening of EU-China trade tensions could allow Tesla to regain its 2% market share.

Put options, as well as many other types of options, are traded through brokerage platforms. It’s important to understand an option contract’s value and profitability when considering a trade, or else you risk the stock falling past the point of profitability. Different put options on the same underlying asset may be combined to form put spreads. Time decay accelerates as an option’s expiration date gets closer, since there’s less time to profit from the trade. In this strategy, the investor buys a put option to hedge downside risk for a stock held in their portfolio. No information herein is intended as securities brokerage, investment, tax,accounting or legal advice, as an offer or solicitation of an offer to ifc markets sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.

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What Triggered Commvault (CVLT) Stock’s Steep 30%+ Drop Today?

The Oracle Algorithm is our system that uses computer-generated algorithms to transform complicated stocks into simple yet effective trade alerts… However, the main reason Wall Street institutions crush the markets day in and day out simply has to do with the fact that… James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement.

“It’s just to me a simple case of market participants getting way ahead and, I guess you can argue, greedy, in over-leveraging, thinking that cheap and free money in Japan was going to be here to stay. That strategy was exposed after Japan last week raised benchmark interest rates for only the second time in 17 years and hinted that such rate hikes may continue. The frenzy also activated circuit breakers in South Korea, where the main market finished nearly 9% lower. It has fallen sharply in recent days, but it is still up about 9% percent for the year. The FTSE 100, Britain’s benchmark index, dipped just over 2%, its worst day since July 2023.

Then it alerts a watchlist of stocks before the market opens so you’re ready to trade. There is no missing any qualified trade setup with algorithmic trading because our algo scans the markets even while you sleep. U.S. stock markets have shed a staggering US$6.4 trillion in market capitalization in just two days, according to The Wall Street Journal. Secretary of State Marco Rubio also said Friday he was confident markets would adjust to tariffs and rebound. Chip stocks also came under attack after Trump said on Thursday the sector could still see tariffs despite its initial exclusion on Wednesday. U.S. stocks closed sharply lower, with the blue-chip Dow shedding more than 2,200 points to enter correction territory and the tech-heavy Nasdaq falling into a bear market, on trade war worries.

Healthcare: Managed Care Stocks Plunge Following Almost-Flat Medicare Rate Proposal

Specialist Meric Greenbaum works at his post on the floor of the New York Stock Exchange, as a television shows President Donald Trump speaking at the World Economic Forum, Wednesday, Jan. 21, 2026. In a commentary published Monday, BMI – A Fitch Solutions Company, said, “The Fed has significant fire power and can cut rates quite aggressively to support growth if needed.” Two years ago, the Fed started increasing borrowing costs to curb inflation, which had caused prices to soar for essentials like rent and food.

The Smart Investor is not a registered investment advisor or broker-dealer. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. This website does not include all card companies or all card offers available in the marketplace. That makes them useful for hedging strategies as well as for speculative traders. But the lower price for OTM puts is offset by the fact that they also have a lower probability of being profitable by expiration. It really depends on factors like your trading objective, risk appetite, amount of capital, and other factors.

• (SPY sell price – SPY purchase price) – (Put purchase price) × Number of shares or units
• If units of SPY fall to $535 before expiration, the $545 put will be ITM and will trade at a minimum of $10, which is the put option’s intrinsic value (i.e., $545 – $535).
• The FTSE 100, Britain’s benchmark index, dipped just over 2%, its worst day since July 2023.
• The index’s slide underscored investor fears that an intensifying trade war will spark a recession, given that small caps would otherwise be expected to benefit from rising trade barriers, analysts said.
• The investor could collect a premium of $3.45 per share (× 100 shares, or $345) by writing one put option on SPY with a strike price of $550.
• The index has lost more than 20 per cent since setting a record less than two months ago and if it finishes the day below that mark will be in a bear market.
• In a significant move, the company is seeking to end the hybrid work era, sparking internal criticism and concerns over staff morale.

Time value, or extrinsic value, is reflected in the premium of the option. As a result, they’re typically used for hedging purposes or to speculate on downside price action. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. An avid trader & real estate coach who’s helped clients realize over 8-figures in profits!

Canadian dollar climbs as one analyst speculates Trump is ‘engineering’ greenback’s decline

The index’s slide underscored investor fears that an intensifying trade war will spark a recession, given that small caps would otherwise be expected to benefit from rising trade barriers, analysts said. Meanwhile, the small-cap Russell 2000 index RUT plunged 6.6%, slumping into a bear market as it ended more than 20% below its recent high set on Nov. 25. Tech stocks were hammered, dragging the Nasdaq Composite COMP down by nearly 6% to its lowest close since Aug. 7.

The move also reflected positioning ahead of Trump’s much ballyhooed “liberation day” announcement, analysts said. Consumer staples XLP, a traditional port in the storm amid market carnage, was the only one of the S&P 500’s 11 sectors to post a gain. It was the benchmark large-cap index’s biggest drop since June 11, 2020, when the market was still reverberating from the onset of the COVID-19 pandemic earlier in the year. Instead, they now face more uncertainty over retaliatory tariffs, economic growth and inflation. “If you are worried about your retirement plan, I wouldn’t be pulling the plug and moving to cash,” Agati added, noting that he would look at investment-grade fixed income investments or U.S.

The price of a put is also affected by how far away the deadline is and how quickly the price of the underlying asset changes. Assume an investor is bullish on SPY, which is currently trading at $565, and doesn’t believe it will fall below $550 over the next month. In this case, exercising the put option would result in a short sale of 100 SPY units at the $545 strike price. The exact price for the put would depend on several factors, the most important of which is the time remaining to expiration.

Uncertainty Drives Sell-First Mentality Among Investors

• Selling the option, rather than going through the relatively convoluted process of option exercise, actually results in a profit of $770, which is $50 more than the $720 made by exercising the option.
• A number of investors and traders had appeared to be attempting to price in a “sell the rumor, buy the news” scenario, in which the tariff details would potentially mark a market bottom.
• If you don’t want to deal with all that risk, make sure you have a deep pool of funds outside of stocks – such as a money market fund – which is likely to maintain or even increase its yield as tariffs boost inflation.
• This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust.
• Options trader Chris Dattolo works on the floor of the New York Stock Exchange, Wednesday, Jan. 21, 2026.
• Buffett said last fall that he was disappointed in Kraft Heinz’ plan to split the company in two, and Berkshire’s two representatives resigned from the Kraft board last spring.

For a put option buyer, the maximum loss on the option position is limited to the premium paid for the put. Thus, most long option positions that are ITM are sold rather than exercised. Selling the option, rather than going through the relatively convoluted process of option exercise, actually results in a profit of $770, which is $50 more than the $720 made by exercising the option. This is because the option may expire at no coinberry review value, and this allows them to keep the whole premium. The buyer of a put option doesn’t need to hold the option until expiration. It’s important to identify a broker that’s a good match for your investment needs.

There are several factors to consider when it comes to selling put options. An option’s intrinsic value is equivalent to the difference between the strike price and the underlying stock price. If the investor doesn’t hold the underlying stock and exercises a put option, this would create a short position in the stock. Investors often use put options in a risk management strategy known as a protective put, a form of investment insurance or hedge to ensure that losses in the underlying asset don’t exceed a certain amount. Conversely, a put option loses its value as the price of the underlying stock increases. A put option becomes more valuable as the underlying stock or security’s price decreases.

Millionaire Traders and Senior Trade Analysts who use algorithmic trade alerts:

What if Trump’s tariffs raise fear to levels not seen since 2004? That’s because companies are more likely to fall short of revenue and profit growth targets as they either raise prices to preserve profit margins – which will reduce demand – or trade99 review maintain current prices which will squeeze margins. “If we are to punch back, you could have damaging effects to not only the tech sector, but the economy overall. This could throw us into a recession and could end the bull market as we know it,” Woods added. Freedom Capital Markets chief market strategist Jay Woods emailed MarketWatch a scenario where “the U.S. doesn’t back down.”

This Analyst Warns Palantir Stock Could Plunge to $50. Should You Sell Shares Now?

That was before Trump threatened to impose 10% tariffs on Denmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands and Finland for opposing U.S. control of Greenland. That’s almost all the way back to the 4.24% level where it was at on Friday. Buffett said last fall that he was disappointed in Kraft Heinz’ plan to split the company in two, and Berkshire’s two representatives resigned from the Kraft board last spring. The oil field services company rose 4.1% after reporting a stronger profit for the latest quarter than analysts expected. The value of the U.S. dollar, meanwhile, clawed back some of its declines against other currencies after sliding the day before. Besides the progress on Greenland, they also got help from a calming of yields in Japan’s jumpy bond market.