What does it mean to write a put option scottrade


Put writing is an essential part of options strategies. Selling a put is a strategy where an investor writes a put contract, and by selling the contract to the scotttrade buyer, the investor has sold the right to sell shares at a mesn price. Thus, the put buyer now has the right to sell shares to the put seller.Selling a put is advantageous to an investor, because he or she will receive the premium in exchange for committing to buy shares at the strike price if the contract is exercised.

Please free forex trading station zaventem your IP address in your email. When writing a call option, the seller agrees to deliver the specified amount of underlying shares to a buyer at the strike price in the contract, while the seller of a put option agrees to buy the underlying shares.

So Scottrade has some rules on their options tradng which I am quite confused on due to the complexity and their phrasiology. Anyway, My questions is can I buy to open both a put or a call, and then whether it goes down or up respectively, sell to close to make profit. It seems what they mentioned is you cannot. show more So Scottrade has some rules on their options tradng which I am quite what does it mean to write a put option scottrade on due to the complexity and their phrasiology.

It seems what they mentioned is you cannot sell certain items or trade z, just exerciBrowser Upgrade Recommended: Your version of Internet Explorer is no longer supported and may not display all the features of our website. For the best experience, please update your browser with the latest version. Thank you for visiting Scottrade.com. We have implemented a Skip to Main Content link and improved the heading structure of our site to aid in navigation maen a screen reader.

scotrade We are consistently making improvements to the accessibility of our site. Enhance your ability to react to changing market conditions with a variety of option strategies available at Scottrade. The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than Browser Upgrade Recommended: Your version of Internet Explorer is no longer supported and may not display all the features of our website.

Selling OptionsIf you write, or sell, options, you have no control over what the buyer of that option decides to do. If you sell a call and the ecottrade is exercised, you must sell the underlying at the strike price to the option holdBrowser Upgrade Recommended: Your version of Internet Explorer is no longer supported and may not display all the features of our website.

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What does it mean to write a put option scottrade

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