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Question
Steveblaze
Please forgive me for this very silly question but I’m new to options trades and just can’t get my head around one bit.
I understand the Call and Put part of the contracts but what I can’t get a grip of is why is get a buy or sell option for each as well.
for example. Say I think the SP will hit 3300 in 2 weeks time then I’d want to Buy and Put option at that price. Why do I also get the option to Sell a put at that level too?
If I’ve understood it right if I sell a put at that level am in assuming all of the risk on that trade if the market goes up? I’m the insurer rather than the insured? Is that right?
thanks for any help
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