08-18-2010, 09:19 AM
Breand the short answer is no, you do not need shares to cover your calls or puts unless your the writer of the contract.
But keep in mind that when the contract expires its done, there is no value to the contract.
In many ways its like rolling the dice. I have made quite a bit of money, and I have lost some. But the way I use them is very much like gambling....
I have never used options in the way they were intended, ie covering an actual position I own for risk mitigation. Its usually a very short term focus on a bet that the stock is going to make a certain move on the short term.
But keep in mind that when the contract expires its done, there is no value to the contract.
In many ways its like rolling the dice. I have made quite a bit of money, and I have lost some. But the way I use them is very much like gambling....
I have never used options in the way they were intended, ie covering an actual position I own for risk mitigation. Its usually a very short term focus on a bet that the stock is going to make a certain move on the short term.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
![[Image: maull2.gif]](http://bengtel.com/maull2.gif)
"If you want to change the world, be that change."
--Gandhi