Put trades

[tommcginnis]

Feel better now?

Finally! I can sleep!!

 

[Baozi]

One of my rules was never to explain anything about options using puts... and selling puts is a 1,000 times worse. Double negatives - peoples brains explode.

...and saying a deep in the money call is a put, because a puts a call and a call is a put...

Yep, Phylo... Options are just options, like quantum field theory is just physics.

Quantum field theory is just physics, black hole, that is another story.

Moral of the story: never short a black hole.

 

[GuerrillaTrading]

I like puts and black holes

 

[Option_Attack]

In the context of the OP who's asking if buying a put equates to short selling, it's an appropriate answer. What I should have specified was 'at expiration'. The downside profit (share price drops) of a long put at expiration is the same short stock less the premium paid. If you want to really dig deep, we can include borrow cost as well.

A trader who understands delta, theta and sorority girls is aware of the trade off between the two, prior to expiration.

Feel better now?