Not really. Puts are contracts to buy/sell a stock at a certain price. You don’t have an obligation to execute the contract, so you can resell it. The only risk is what you pay in premium.
So if I buy a $35 put on Twitter, and the price is $27, it will be worth $800 (contracts are for 100 shares) at expiration.
Without getting too complicated, if the stock is not lower than $35, your contract expires worthless.
Not really. Puts are contracts to buy/sell a stock at a certain price. You don’t have an obligation to execute the contract, so you can resell it. The only risk is what you pay in premium.
So if I buy a $35 put on Twitter, and the price is $27, it will be worth $800 (contracts are for 100 shares) at expiration.
Without getting too complicated, if the stock is not lower than $35, your contract expires worthless.
Many thanks, will do more research.