Long put option maximum loss
Adds slightly to cost of maintenance commission, spread but is definitely much cheaper than buying pack a deflated option I have been trying to get this answer If you buy a put and the stock is hard to borrow will the broker prevent you from exercising? Short Ratio Call Spread. Placing the two transactions in this case the stock purchase and the option sale in the options chart helps you calculate the maximum gain as well as the maximum loss. If ATM call and put options are traded at a huge difference, might there be an arbitrage opportunity? So there is no actual interest fees the trader is paying for that margin being issued from the broker for selling non-cash secured puts. Long Ratio Put Spread.