Buy Stocks with Options

Lets say you want to buy 100 shares of Matze Unlimited and you really want to buy them, because they are part of your long term Dividend Plan for your retirement. Instead of buying them with a regular Market Order you may:

Sell one Put-Option (one Put-Options equals 100 shares)

Lets say the price for 1 share is currently 10€ and you are willing to pay up to 10.50€ per share. You then sell the Put Option for 10.50€. This is equal to the following contract between you (the seller) and someone else (the buyer):

"This Option guarantees that whose owner can (but doesnt must) sell 100 shares of this stock for 10.50€ to me."


Downside: price falls drastically under 10.50€.