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Strategies & Market Trends : Three Amigos Stock Thread

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To: Sergio H who wrote (8080)	8/25/1998 9:55:00 PM
From: Ken W	Read Replies (1) of 29382

Sergio, Fully realizing that you are by far more versed than I regarding Puts and Calls, I would like to ask a question...If I sell Puts on a stock and someone obviously buys them and they elect to execute the put, does that not mean that I have to buy the stock at the strike price of the Put. Thus, the statement having the stock "put to me" As an example. I sell 15 dollar put options and the stock drops to 13, I've made the premium, but, the buyer of my put excercises, then I must buy the stock from him at 15? Naked puts and calls or straddles look to be a very risky business, with the market being so crazy lately. I realize that 85% of all options expire worthless, but it would only have to happen once to hurt you. Ken

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