Some help please regarding put options

[stargazer]

Hi all

I am just starting to look at PUT OPTIONS as a way of insurance against a stock i may purchase.

I looked at OZL not for any particular reason. The current price on OZL is $1.485 close on Friday.

I went to the ASX site and brought up the OPTIONS.
OZLKD 26/02/09 P 4.380 2.895 2.895 0.000 4 2.895
The above is one line expiry around 12 months from now could someone explain what this is saying and the cost to buy this option per share etc

I am considering this over a stop loss due to being whip sawed and getting caught. eg gaps down.



Cheers
SG

 

[cutz]

Hi Stargazer,

There already is a thread on ASX prices in the derivatives area, but to answer you question, 4.38 is the strike, 2.895 2.895 is the bid/offer but this is inaccurate because as someone else pointed out if there are no bids/offers the ASX will fill in these fields with theoretical prices at certain times, try checking again when the market is open, 0.000 is last price, 4 is open interest which is the total number of contracts that are open in this case its very little therefore this series will be very illiquid, 2.895 is what the ASX calls margin price which I assume is the theoretical price.

BTW if you a feeling bullish on a particular stock why not just buy a call, do a search for WayneL's thread on synthetics for more info in this.


Cutz.

 

[stargazer]

Thanks cutz

appreciate the reply.

cheers
SG