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When you buy a put, you're basically buying insurance.

Posted on: September 7, 2022 at 18:39:17 CT
Macgrantt MU
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You're paying someone to take your stock if it goes below a certain price, the strike price. If it does, the other takes your shares. If it doesn't, you keep your shares and they keep the premium. They are betting your shares stay above the strike, you're insuring that if they drop drastically, you won't get totally killed. There's no I buy and he sells that I'm aware of, as with a security. This is an option trade.

Edited by Macgrantt at 18:41:28 on 09/07/22
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MESSAGE THREAD

I don't think we've seen the beginning of the #BidenCrash - Th8tnTiger MU - 9/7 15:47:17
     They know it's coming; will make 2008 look like a lawn party - OntheMark MU - 9/7 21:25:30
     increased volume means very little since there are just as - zounami MU - 9/7 18:20:06
          also, the tweet you linked to seems click-bait'ish to me... - zounami MU - 9/7 18:22:28
     Did they buy puts or sell them? That makes a vast difference - Macgrantt MU - 9/7 16:01:41
          Both. A security cannot be bought without also being sold. (nm) - zounami MU - 9/7 18:05:35
               When you buy a put, you're basically buying insurance. - Macgrantt MU - 9/7 18:39:17
                    A couple things... First, exercising an options contract is - zounami MU - 9/7 18:54:21
                         Every option trade, be it selling a put, or call, - Macgrantt MU - 9/7 19:03:00
                              That's incorrect. Options are just derivatives/contracts. (nm) - zounami MU - 9/7 19:06:31
                                   Maybe to be clear, every options trade I've made. - Macgrantt MU - 9/7 19:09:53
                                        ok, I thought you were saying every contract is settled - zounami MU - 9/7 19:39:13
               i.e., there's a buyer and a seller in every transaction (nm) - zounami MU - 9/7 18:06:05
          The link says they bought them. (nm) - Spanky KU - 9/7 16:05:28
          uhh - Th8tnTiger MU - 9/7 16:05:27
               If you really believe this Mr. uhh, short the market. - Macgrantt MU - 9/7 16:19:18
                    so angry - 90Tiger STL - 9/7 16:43:03
                         It’s been a while since he got to stage 5 - Panthera MU - 9/7 18:06:37
                         Calm down - Macgrantt MU - 9/7 16:50:49
                              your very first and every subsequent response was - 90Tiger STL - 9/7 16:55:22
                              lol, i'm super calm laughing at you (nm) - 90Tiger STL - 9/7 16:54:31
                                   So glad I can provide an oasis of entertainment for you. - Macgrantt MU - 9/7 17:04:00
                                        don't exaggerate your value (nm) - 90Tiger STL - 9/7 17:06:50
                    lol - pickle MU - 9/7 16:21:21
                         Mark it down. Yes, Pickle I misread the OP. Short the market - Macgrantt MU - 9/7 16:25:17
                              you didn’t misread the OP (nm) - pickle MU - 9/7 16:28:46
                                   Is there anything you're not obstinate and defiant about? - Macgrantt MU - 9/7 16:32:07
                                        everyone makes mistakes - pickle MU - 9/7 16:44:47
                                        if this isn't irony or an extreme lack of self-awareness, no - 90Tiger STL - 9/7 16:43:50
               lol (nm) - pickle MU - 9/7 16:11:50
                    Who broke you? I wish everyone was as smart and flawless, - Macgrantt MU - 9/7 16:15:59
                         me too (nm) - pickle MU - 9/7 16:20:28
                              think of the time we'd save (nm) - 90Tiger STL - 9/7 16:44:09
                              lol (nm) - Sal CMSU - 9/7 16:42:59
     f v c k (nm) - 90Tiger STL - 9/7 15:48:10
          LOL, you don't know **** about anything... - Gyro STL - 9/7 18:08:54




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