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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: fingolfen who wrote (165125)5/14/2002 1:18:22 PM
From: kapkan4u  Read Replies (1) | Respond to of 186894
 
<Okay, so I'm still fuzzy on this whole "put" thing. So by buying July $35 puts, for $5.40, you're betting Intel stock will be <=$29 in July, or at the end of July, or what?>

I can "put" (or assign) INTC stock to the writer of the put at any time between now and July 19th and pocket the difference between the market price and $35. So I can make money any time when INTC is under $35 - $5.40 = $29.60. However, as long as there is a put premium left, it is better to sell the put, than to assign it.

Kap