First Luke, my apologies for calling you Jeff (I was in another area, earlier and forgot where I was at). I appreciate all the time you put into your two previous explanations.But I'm still confused and may not have properly explained what I did (or what I am thinking). I'm new to Options and just got into MF Options, last month (I started with MF, a while back, with Stock Advisor—just buying small amounts of shares to get into it with what little I had to invest, at the time).I also may be in trouble, if what I thought was the case… isn’t.With options, my thought was that I would just buy Basic Puts (Sell to Open) to keep it simple, in the beginning.Presuming the Puts expired AT or BELOW the Strike Price, I would use cash, kept in escrow, to purchase the 100 shares from the buyers of the options that I wrote, and the buyers would exercise those options and sell their shares to me (1 contract each is what I’ve been buying) for the current lower price at expiration (less the Premium I received--held in abeyance in my savings account -- when I originally wrote each Sell to Open).If the shares, instead, ended up ABOVE the Strike Price, at expiration, my understanding is that the owners of the options would not exercise them. They'd let them expire and I would simply pocket or reinvest the Premium.Based on your last note to me, I may have underestimated the difficulty in the learning curve (or the process). Here’s where I stand with DDD (and, frankly, a few similar Sell to Open PUTs that I have written in the last month).Last Fall, I originally bought outright 14 shares of DDD @$39 (regret not buying more, but was all I could afford at the time). Since then, my wife and I came into a small amount of family trust money, so we thought we’d use the Basic Options strategy to pick up stocks, in which we would like to invest, at a lower price (or at the least pocket the Premiums if the Puts expired higher).So, over time, I wrote two separate Puts for DDD… each one at a different price (1 Contract each X 2 Puts – not Covered):The first was DDD Sell-to-Open May 18 ’13 $45 Put (where I picked up a $2 Premium or $189 after commission). The idea was that there was probably no way Strike would reach that level now that the Fiscal Cliff had settled down… and it would expire, at a higher share price, leaving me with the Premium in the bank. But if it does hit at or below $45 Strike, I’m prepared to purchase the 100 shares from the buyers, around expiration time -- if I understand the process correctly.Now – this is the contract that I was asking about earlier:A week later, the second Put I bought was the DDD Sell-to-Open March 16 ’13 $65 Put (where I picked up a $4.20 Premium or $409 after commission). The idea was that the potential for the Strike to hit would be more plausible—considering where shares were and we would still get the contract at less than what shares had been selling for, at the time, before expiration date (if at or below Strike)... or, I'd just accept the Premium at expiration, if not.Where I’m now truly confused…. With DDD shares ALREADY selling way below Strike (7 weeks prior to expiration), I don’t understand the process for Selling to Close EARLY below the $65 Strike price. And I am prepared, financially, to purchase the buyers shares back at the (now current $59 or so price).Would the buyers be willing to close early? And what language would I use in the Sell to Close order (I’m with E-Trade). The problem I seem to run into, when I click “Trade” on that particular Put Order, the earliest I can execute a Sell-to-Close order is February 13th (not tomorrow or this week).So, how would I purchase back the contract, from the buyers, at the below Strike price tomorrow, for example? Is that even possible? Am I even using the correct process, here, or am I just totally confused? I am willing to wait each contract period out, but I thought this one DDD, in particular, needed some attention.If you’ve read this far without giving up, I really appreciate your patience and perseverance ?I have a few other Puts that I wrote, this week (some where I expect Strike to go below, and others where I believe Strike will be close or above, but won’t sweat it if I can’t pick up extra shares to round out what I have bought already). Am I heading in the right direction, or am I really in trouble, here?For example:WPRT Jul 20 ’13 $28 Put (1) @$4.10GME Apr 20 ’13 $21 Put (1) @1.32GE Sep 21 ’13 $23 Put (1) @1.99Thanks for your time,Craig
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