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by _heimdall
693 days ago
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This basically means the person has a guaranteed buyer who has to buy a set number of shares of CrowdStrike at $185 per share. If the price drops below that, say to $100, this person can buy a share at market value and immediately execute the contract making the person buy it at $185. In the meantime, as the share price drops the contract's value itself usually goes up. They can sell the contract itself without having to touch shares and still make a profit. |
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