Congratulations! Could you share how exactly it works?

来源: 2010-09-16 13:44:24 [博客] [旧帖] [给我悄悄话] 本文已被阅读:

Congratulations!

Could you share how exactly it works?

For my understanding, if you sell 1 put, you get paid $102 today for Oct 15 2010 put. Today's price is $12.00.

Possibilities on Oct 15 2010:
If the price of ATPG is $10, then you need to buy 100 shares of ATPG at $12, so you'd loose $100 on this deal.
If the price is $11, then you break even.
If the price is $12, you've just made $100.
If the price is $13, you've still made $100.

Is there any other profit center?