/biz/ - Business & Finance

>>13484063
oh no I guess I better sell

I understand options, but what exactly is "selling put options"?

Two traders were interviewing a 13 year old who was pretty much a master trader and one of the interviewers said, if I recall correctly, "I'd buy call options on him. No, wait, I'd sell put options on him!" (If I remember right).

In my mind, that means he'd be putting up his capital in order to collect money from people buying puts, correctly? To where he'd be getting the money people buy puts with, with his own capital on the line. In essence, betting against other people that this kid would shine (hypothetically).

I've spent a little time looking up selling put options, and this doesn't seem to be the case. If not, what exactly am I thinking of?

Thanks,
An Partially-Ignorant Anon