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Technology Stocks : Dell Technologies Inc.
DELL 120.53+0.7%Jan 16 9:30 AM EST

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To: Ex-INTCfan who wrote (110543)3/22/1999 6:59:00 AM
From: edamo  Read Replies (2) of 176387
 
intcfan....re puts

put seller,gets premium=long stock=bullish=stock price up=profit

put buyer,gives premium=short stock=bearish=stock price down=profit

put selling is an agressive, but yet conservative due to understood limited risk to benefit from the upward movement of the underlying..

put buying sometimes used as insurance hedge if you own the underlying to give downside protection...my problem with this strategy is if you don't have long term faith in the underlying why not just sell it?

put buying also used as a leveraged short position by traders...limits risk because they can only lose the premium they pay, whereas an underlying short can be much higher risk...regards, ed a.
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