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by Kranar
1819 days ago
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Suppose you sell 1 put for 1 dollar with a strike of 100 dollars. The worst case scenario is that the asset decreases in price to be worth 0 dollars. The buyer of the put then exercises their option to sell the asset to you for 100 dollars, hence in total you lost 99 dollars. As a general matter, the most you can lose when selling a put is the strike price - premium. |
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