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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: space cadet who wrote (300)	1/7/1998 9:17:00 PM
From: Gotham Guru	Respond to of 18691

space, let me bring you down to earh a bit. when you have shorted a stock you have borrowed it and then sold it in the opened market. now, you owe the person from whom you borrowed the stock those amount of shares. in order to pay back your loan you have to go out into the open market and purchase those amount of shares you have borrowed and already sold and return them to that person. you hope that at the time you borrowed them and sold them that you sold them at a higher price than it will cost you to buy them later and return them. now, as far as puts are concerned, i am short a stock and i am selling( thats selling the puts) . the person who bought these puts and paid me (thats to me they paid) the premium , has the right now to "put" the stock to me (thats sell me his stock at a predetermined price) (that means i'm buying it) and now that i have bought it i can return my loan to the original person that i borrowed them from. i know this sounds difficult to understand but maybe some of the others on this board with better knowledge and experience can also explain it. Demetri