Here’s Part 2 of the animation explaining options trading…. this time for PUT Options… Quite well explained… but I need to correct the definition of PUT option mentioned at 2:02…
It was stated that
Put Option = Buying the right to sell an underlying option…
That’s confusing… what is an underlying option??? You do not buy an option for the right to sell another option….. The correct definition for Put Option should be “Buying the right to sell an underlying SECURITY or ASSET“…
so, if you bought a AAPL Stock PUT option, you bought the right to sell the underlying security(in this case, the AAPL stock) at the pre-determined strike price…
I think this was just an oversight on the author’s part, cause his definition for CALL option was correct… Anyway, other than this mistake, the rest of the animation is pretty cool… enjoy 
