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The March 17 $10.00 put last traded at $.91. The stock closed today at $9.65.

Question is this: If I write the $10.00 put for $.91 and the stock stays at $9.65 till expiration, I have to buy the stock at $10, which is really an effective price of $9.09 due to the premium. If I then sell the shares for $9.65, I have a 5.9% return in ~30 days. Minus, of course, transaction fees and taxes. Is that right?

The risk is the stock goes above $10 and I don't get the stock, but keep the premium, or it falls below $9.09 and I have to buy the stock and am underwater on it. Again, is that right?

Thanks in advance for all replies.

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