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Strategies & Market Trends : Ride the Tiger with CD
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To: Canuck Dave who wrote (84447)6/3/2007 6:00:20 PM
From: Condor  Read Replies (1) of 312899
 
So do you short the stock when you sell the put?

If you play simple put and call options you dfo no shorting.
On the put , you would buy a put for $x and if the stock dropped in price, the put becomes more valuable and you simply offer it for sale. Think of the put item or call item as a stock. Your call increases in price if the stock goes up and the put increases in value if the stock goes down.
If one chooses, options strategies can get very sophisticated like doing straddles and on and on but that would be for sophisticated option traders and I am certainly not that although I have done simple straddles.
Simple buying of puts and calls is straightforward like warrants.
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