Finally, many companies employ debt in their capital structure. Higher borrowing costs hurt earnings. Lower rates or the expectation of lower rates has the opposite effect. Second, is the state of investor sentiment , which is a so-called contrarian indicator. Generally, the more bullish investor sentiment, the more bearish it is for the market.
Puts are options to sell a given security at a strike price within a specified time period.
If the price of the underlying security drops, the put will rise in price. A put buyer is betting on the possibility of a price drop. A call is an option to buy a stock at a strike price within a specific time period. A call buyer will see his option price rise as the underlying security rises. Intrinsic value of an option is actual true value of an option.