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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?


To: Cesare J Marini who wrote (1060)1/26/2000 7:52:00 PM
From: taxman  Read Replies (1) | Respond to of 1235
 
but it is put holder who holds the option to put. if he buys a 35 put from you for, say 1 dollar, and dell goes to 100 by expiration, the stock will not be put to you. you make 1. had you bought the stock instead at 35, you would have made 65.

now if the stock goes down to 2, the stock will be put to you at 35. you now have a paper loss of 32. granted, you would now have unlimited upside.

regards