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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Howard R. Hansen who wrote (2093)	6/12/2001 1:07:02 PM
From: LKO	Respond to of 2241

But I still haven't figured out the connection between selling a put on margin and shorting a stock. Both involve selling something (that you don't have :-))and then buying it. (Reverse of the more common process). If you sell short 100 shares of XYZ you are "short" on those shares and need to buy them to return the world to a normal state. <G> The terms Buy/Write are much more logical and consistent with common sense than Long/Short. Remember school algebra days when you first heard of horrible things called "negative numbers" ? And "complex numbers" which don't just have "real" numbers but "imaginary" parts too ? Everything has jargon, one has to learn it, not like it. <G>