NewHydrogen Inc. (NEWH)

[Chiinkwia1]

I mean puts. He buys option guarantees. Or rather he will buy blocks of 100 if the PPS OF A COMPANY DROPS BY 10% over the contract period. He gets paid thousands of dollars up front with no immediate need to buy the stock. His money to keep no matter what. If the stock goes down 10% by the end of the contract period he is obligated to buy all the shares, blocks, he contracted for. Of course he is buying that 10% or lower than when he placed the puts. Either way he wins.

Oh yes. If the stock stays flat or goes up he still wins. He, in his case, gets to keep the thousnds of dollars he was paid up front. You or me probably a few hundred dollars. Blocks are 100 shares each. He probably buys thousands of blocks at a time. He makes money either way. If he has to buy the puts and the stock goes back up he wins double.