Timeline for Why do speculators short-sell a stock when they wish to go short, rather than purchase put options?
Current License: CC BY-SA 4.0
5 events
| when toggle format | what | by | license | comment | |
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| Jun 27, 2018 at 23:18 | comment | added | Bob Baerker | @Acccumulation - Options are derivatives and they primarily reflect the underlying's price. If you own a long put, hoping to benefit from share price decline. If successful, you STC the long put to lock in the down move that you have captured, whenever that occurs. Waiting for expiration makes no sense at all. | |
| Jun 27, 2018 at 22:30 | comment | added | Aganju | @Acccumulation then the share price can have changed significantly. If you are expecting a two-day dip only, you can't wait three month. And your capital is dead while you wait. | |
| Jun 27, 2018 at 21:39 | comment | added | Acccumulation | With a put, worst case you wait until the strike date. | |
| Jun 27, 2018 at 16:30 | comment | added | Bob Baerker | There is always a market for the options (the market maker). You may not like the price but you can always sell your puts immediately. In some situations, you can utilize long shares of the the underlying to facilitate exit. | |
| Jun 27, 2018 at 16:03 | history | answered | Aganju | CC BY-SA 4.0 |