Hi folks - please bear with me here... I trade stocks but Ive never traded options before. I am trying to learn and understand how people use them typically. Thanks in advance to anyone with the patience to teach a nub. So ... let's use YHOO as an example. If I had bought a $30 June put... and YHOO went down like it did today.. Im curious as to what happens when you exercise that put. Does one typically buy the stock at the current price, then exercise the put? Can you exercise a put if you dont have the stock? Im trying to understand that part of the trade. Thanks all - retarded question but I just read 3 options tutorials and none of them explain that. Calls make sense since you are about to buy the stock.