04-12-2022, 03:14 AM
Calls and Puts. I understand what happens when one exercises a call option
<!-- SC_OFF --><div class="md"><p>But what happens when one exercises a put option? I started trading options in very very small amounts just to see how they work. I have not exercised an actual call option but I know that you get the 100 shares for the price set in the option. Puts are a totally different animal for me. It took me much longer to understand just how they work and now I get it but I still don’t know what happens if I chose to exercise one. I know the general rule is to sell the options but I am just curious and fairly new to the whole options game.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/8512764EA"> /u/8512764EA </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/u1e1op/calls_and_puts_i_understand_what_happens_when_one/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/u1e1op/calls_and_puts_i_understand_what_happens_when_one/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>But what happens when one exercises a put option? I started trading options in very very small amounts just to see how they work. I have not exercised an actual call option but I know that you get the 100 shares for the price set in the option. Puts are a totally different animal for me. It took me much longer to understand just how they work and now I get it but I still don’t know what happens if I chose to exercise one. I know the general rule is to sell the options but I am just curious and fairly new to the whole options game.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/8512764EA"> /u/8512764EA </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/u1e1op/calls_and_puts_i_understand_what_happens_when_one/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/u1e1op/calls_and_puts_i_understand_what_happens_when_one/">[comments]</a></span>Kind Regards R