How do puts work?

Yes what I said - reverse.

 

• The Elon_Bezos tweet needs more context - it makes no sense as written.
  
• As with long calls you can't get a margin call with long puts - just beware on expiry day and close any positions that are ITM (or might end up ITM) to avoid auto-exercise.

 

Yeah, that's what I thought. Maybe he's talking about leverage that would make more sense.

 

You can't buy options on margin.

 

Does my statement stand on it's own?

https://www.elitetrader.com/et/threads/how-do-puts-work.352340/#post-5246122

 

For investors with a small account, ITM options are valuable IMO as you can purchase most stocks with approximately 25% of the funds needed to purchase the stock. Stock purchases can be bought on margin @ 50% but ITM options are even better IMO. Smaller investment and downside protection in case of a blowup.

 

99% of option traders have no interest in trading the stock.

 

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They work a lot like insurance/insurance companies\ the company makes money by you paying a small premium;
except you never get a dividend...…………………………………………………………………………………...