Wrong Curly

By: crunchgodabruinknees

Ask Moe-- he will tell you. I had the option to sell something I didn't yet own. I bought what I didnt own before at a low price and sold it using the put at a higher price, dumbass. Your math is wrong. If you have a $7.00 put and the shares go to $3.00 the PUT is worth $4.00. You have the right to sell at $7 and can buy at $3. So you buy at $3.00 and sell for $7.00. The margin is the difference in the prices less the cost of the option. It was a simple short.

What are puts, exactly?

Put options are basically the reverse of calls: a call gives the owner the right to buy stock at a given price (the strike) for a certain period of time. A put, on the other hand, gives the owner the right to sell stock at the strike price for a limited time. Let’s discuss owning puts first, followed by holding a short put position.

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