I’ll sell you the opportunity to take my share right now and sell it, if you promise to buy me another share in 3 months at the going rate then. If I guess right, that share will cost as much as it does right now, so when I get my share back, it’s still worth what it was before and I keep the fee you paid to borrow my share. If you guessed right, you can replace that share at a much lower cost in 3 months.
The cost I’m going to ask to lend you my share will go up as the likelihood of the price going down later on increases. If it’s really, really likely that the cost will go down, I’m going to charge your ass off to borrow my share to offset the potential loss I’m going to take.
I’ll sell you the opportunity to take my share right now and sell it, if you promise to buy me another share in 3 months at the going rate then. If I guess right, that share will cost as much as it does right now, so when I get my share back, it’s still worth what it was before and I keep the fee you paid to borrow my share. If you guessed right, you can replace that share at a much lower cost in 3 months.
The cost I’m going to ask to lend you my share will go up as the likelihood of the price going down later on increases. If it’s really, really likely that the cost will go down, I’m going to charge your ass off to borrow my share to offset the potential loss I’m going to take.
God damn the stock market is just pure unadulterated gambling
Yes
This is why I don’t play in options, I can never keep them straight. I apparently meant I considered shorting the stock.