Recent content by getagb

Because the option might not get exercised.

In case the option was not exercised.

It's the same as buying 100 shares of the stock, except if the option is not exercised then I can keep the premium and use it to buy the stock a week later for free (roughly).

Hello, I am comparing two options trades, both of which would be a sell-to-open in-the-money put on AAPL: JAN 19 '13 $1040 - bid $518.80 JAN 19 '13 $1010 - bid $488.80 Is there any reason to sell the $1010 option when the $1040 is available, since the difference between the premiums is...