Hey kids! Did you know some grown-ups use something called options to try and make money from stocks? It's a bit like a smart guess about what a company's stock price will do. It's a little tricky, but we can learn about one example!
- Trade Desk (TTD) stock went down a lot recently.
- Some people think it might stop going down soon.
- They're using something called a 'bull put spread' - a special way to bet on the stock going up or staying the same.
- It's a bit like buying insurance against the stock going down too much.
| Thing | Number |
|---|---|
| Stock price support | $60 |
| Current Stock Price | $73 |
| Possible Maximum Profit (per contract) | $90 |
| Maximum possible Loss (per contract) | $410 |
Remember: Investing in stocks is risky. Grown-ups should always be careful and ask for help from experts before making any decisions. This is just for learning, not real advice!
