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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: backman who wrote (9129)11/22/1998 2:23:00 PM
From: Caroline  Read Replies (1) | Respond to of 14162
 
If you sell a put, you're obligated to buy the stock at the strike.

If the stock price is above the strike price, you won't get called. The "other side" can sell the stock to you at strike (low), or sell it on the market (high).

If the stock price is below the strike price, you will get called. You will have to buy (high) a stock which is now lower.

HTH,

CB