The point is, the person that took my ten dollars per share put themselves at risk of having to purchase shares from me at $760. There is no market distortion, unlike a shorting, because I don't borrow shares. If the put option goes to fruition, I buy 100 shares at the market price, and then they buy them from me for $760. I'm not selling something that I don't own. I'm saying that if by 3/8/24, it is advantageous for me, I will purchase NVDA shares at the market price, and someone that I paid $10 will have to buy them from me for $760.
If I wait too long, or NVDA's price continues to move upwards, the contract expires, and I lose my $10, but in no way did we distort the share price. Unless the put option is executed, literally nothing happens except that I hand someone $10/share, and if it is executed, I purchase 100 shares at the market price, and someone else buys them from me for $760. No shares were magically conjured up and sold, even though they didn't actually exist.
LTR Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
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