Don’t “Puts” work a bit differently?
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yes
while short selling is a trade that sells the underlying security now at market price typically using shares borrowed from the broker dealer who charges the short seller interest on the borrowed shares
a PUT is basically a contract/agrreement to sell a shre of stock at a certain pre determined contract price at a certain specified date in the future
the broker charges a one time premium for executing the put contract based on relationship to actual market price + the time value until the contract expiration date.
this premium is the only cost the put buyer will experience
if the share price goes down below the pre determined “strike price” the put owner can sell his put contract on the open market at a price that may exceed the premium he paid for the option contract
if the market price goes up or stays the same, the put contract may become worth less money that original purchase price & may even expire worthless.
the only loss is the premium
the short sale has unlimited risk that covering the shares borrowed for the short sale if the share price has gone up in market value from the original sale price of the security
the market price for covering short sale borrowed securities will rotate up until they find a willing seller at the market price (aka: short squeeze)
:: a PUT is basically a contract/agrreement to sell a shre of stock at a certain pre determined contract price |||at a certain specified date in the future||| ::
What was the date for both $DJT and Rumble Puts?