calls and puts question

Discussion in 'Options' started by Chance360, Jan 27, 2008.

  1. Chance360


    I've been doing a lot of studying, most of the basics and stuff I have done, and am much more familiar with than when I first started.

    I have a question though.

    I myself don't have the desire to actually purchase any stock (covered), although I do want to trade options in the future (nakedly), I guess.

    This means that I can only buy Calls and Puts, without the option of selling them unless I decide to buy, sell stock.... (in case they are exercised) correct??? or?

    I was enlightened an hour or so ago, I completely thought otherwise before.
  2. spindr0


    The owner of a long option has the right to exercise and buy or sell the stock. So you will never have to be involved with the stock if you choose not to. It's the seller of the option who has to buy (or sell) the stock if assigned.
  3. spindr0


    FWIW, long options have no loan value and must be bot for cash.
  4. MTE


    What's up with all the "...."? Is it really that hard to write complete sentences!?
  5. spindr0


    Try reading an entire paragraph out loud on only one breath :)