Right I understand the “gist” of it. Here is where it gets confusing for me. I buy a call for example, for $80. Strike price is $150, exp 1 month out. Whatever. Boom I’m in the money, I sell the contract, collect the premium right? So maybe the premium on the contract went up to $200 or something so I made $50? I couldn’t exercise right because I don’t have the shares? Then on the flip side, if it was a put I bought, is that where getting assigned comes in and you get wrecked? Im just confused yo. Like where is the profit made off options. The difference in price of the option contract itself?

So I can’t buy a put unless I own 100 shares of PGR? I’m still wet behind the ears, sorry!

Haha this is a good comment right here!