Unpacking the Premium: Why Are Puts So Expensive in Today’s Market?
In the world of options trading, the pricing of put options often raises eyebrows, especially when compared to their call counterparts. Investors frequently ask, Why are puts so expensive? This question is particularly pertinent in the current market landscape, characterized by volatility, economic uncertainty, and shifting investor sentiment. In this article, we will delve into the factors contributing to the high premiums of put options, exploring the intricacies of option pricing models, market psychology, and macroeconomic influences.