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Message
re: SLV
Posted on 12/11/13 at 1:56 pm to LSURussian
Posted on 12/11/13 at 1:56 pm to LSURussian
quote:
No, you would lose the premium you paid for the option which is $10, $.10 X 100 shares.
Thats what I meant...
Basically, I am not forced to buy the 100 shares at 20 bucks, only pay a "Penalty" of 10 cents a share that I could have bought.
1
Posted on 12/11/13 at 3:11 pm to Lsut81
quote:Right. The option (pun intended) whether to buy or not is yours as the owner of the option.
I am not forced to buy the 100 shares at 20 bucks, only pay a "Penalty" of 10 cents a share that I could have bought.
The seller of the option is at your mercy. He has collected his premium for selling you the option and now he waits to see if he has to deliver the shares.
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