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Ways to improve selling price in a down -sideways market.
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coup
Posted 11/27/2022 09:28 (#9952024 - in reply to #9952019)
Subject: RE: Ways to improve selling price in a down -sideways market.


USA
thunderhut - 11/27/2022 08:25

When you sell a put are you not responsible to pay difference in put buyers strike price and the price you sold the put at?

I sell a $10 put
Price goes to $5
Person that bought put activated it.
I need to come up with $5 margin money

What am I missing?


Hta provides the downside margin for the put. Once put gets to strike price it is a wash. Basically the put is a knockout.
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