silverwind18

silverwind18 OP t1_jeb07mf wrote

Reply to comment by CompetitionDouble420 in A few lucky coinflips... by silverwind18

Yes, in order to exercise a put option, you must have the underlying shares available to sell at the strike price. This means that if you don't already own the shares, you would need to purchase them at the market price in order to exercise the put option.

Note that most options traders close out their positions before expiration rather than exercising them.

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silverwind18 OP t1_je88qgb wrote

Reply to comment by braxhusky in A few lucky coinflips... by silverwind18

The economy will eventually get better since the world's largest exporter has lifted the Covid restriction at the beginning of this year. So the general strategy is to buy calls, and occasionally short if things are overbought/oversold. The market doesn't always react to the news immediately, so I just give it time and do options that are about two weeks long.

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