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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (2570)	1/18/1999 2:16:00 PM
From: Kip518	Respond to of 3339

Well, actually the owner of the put has a contract to sell, and if the stock is selling at a lower price can oblige the seller of the put to buy. Also, once an option expires unexercised it is worthless. T- that is my point. I'm not speaking of puts as originated. Rather, I intended you to understand this as "A put is a contract to buy the stock (or put) upon the expiration date from you the put owner." You may have someone's obligation to buy the put back (or the stock from you) but that obligation is enforceable only as an ordinary contract. Contracts can (and under Bollinger's scenario will) be defaulted upon. You will not be able to exercise your option (as put owner) against a bankrupt put seller. Hence, you will both be losers.