SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Strictly: Drilling II
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: kirby49 who wrote (11210)4/25/2002 8:31:15 PM
From: t4texas  Read Replies (2) of 36161
 
ok, question 1 reply example: i have sold an uncovered put on a stock. i have not bought the put back yet, because i would have a loss that i don't want to take at this time (for whatever reason). the expiration is at hand. i decide rather than buy the put back at a loss, i will just let the put owner sell me the underlying stock at the strike price. over that expiration weekend the options exchanges sort everything out, and on monday i get the shares sold to me at the strike price by my broker outfit. so that is one way it happens. i have only had f put to me. all the other times the uncovered puts have either expired worthless or i have been able to buy them back at a profit over what i sold them for. (as i wrote this, i thought this is sort of like high/low split in poker. you just have a lot of ways to get out of the hand with a win or draw.) if you have selected stocks that you may want to own, even if they are put to you and you paid too much, time is now on your side. you own the stock, and you might not have to wait long to break even or get a nice profit.

question 2: f is ford

20 strike price minus 2.50/share put option equals 17.50. (they paid me the 2.50 per share. i did not pay them.)

hope this answers the questions. i did this sell put stuff on nem (17.50 strike) back last year when nem was around 18 or 19. they expired worthless. not to worry, i was bullish and got a lot of nem anyway.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News