Current Events > Robinhood stock question

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If Im going to buy a put contract, do my shares have to match up to the contract exactly? For instance if I wanna buy 2 puts at 200x shares each, can I do that if I only have 184 shares of the stock? Or would I have to actually have 200 shares?

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Contracts are for 100 shares each, so if you want 2 you'd need 200 shares.

Unless they allow you to not have the collateral, in which you're selling/buying what you don't have but it's still in 100 increments and you don't have to actually have the shares unless you're placing covered calls. If you're asking this question I'm going to go ahead and say you probably aren't approved for that level of options trading (naked calls).

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Conker posted...

Contracts are for 100 shares each, so if you want 2 you'd need 200 shares. Unless they allow you to not have the collateral, in which you're selling/buying what you don't have, but if you're asking this question I'm going to go ahead and say you probably aren't approved for that level of options trading.

Yeah Im not approved for that. Okay cool. Ill just buy the extra shares and include them in the put. Thanks.

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I edited my post, but you don't have to own shares to Buy a put. Just have enough funds in your account to cover the cost of the contract. You really only have to own the shares or have the amount to cover the cost if you're selling.

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