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Could someone explain what is wrong with my thinking.

For instance, assume I am interested in picking up 100 shares of NFLX. The current price is $53 but I would like to get them at $50. I might set a limit at $50. But I could also sell a Feb $50 put for $2.40.

If the price isn’t below $50 then the option expires and I profit $240. If the price is below $50, then I am forced to by the shares at $50 making my cost/share $47.60. If I wanted to pick the shares up at $50, why wouldn’t I choose to use the put strategy?

Thanks in advance,

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