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XenaLives

02/11/22 4:28 PM

#93377 RE: spartex #93376

I don't understand options that well, so I'd rather hear a more experienced opinion.. thanks for pointing that out though.

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pitcook

02/11/22 4:52 PM

#93378 RE: spartex #93376

People buy lots of Puts if they think the stock will go lower. People will buy lots of Calls if they think the stock will go higher. It's like betting the over/under in a sporting event. There are many variables about people that write options against their shares, and naked options, but the vast majority are betting on the over/under. If you are right, You are leveraging your money where each put/call option is equal to 100 shares at much lower a cost. The difference from the shares is that it is a ticking timebomb. The closer to the expiration date, the more value is taken out.