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Posted on Jul 27, 2024

For the writer of a put option, if the underlying share price: a. moves above the strike price, the premium is reduced by the difference.

For the writer of a put option, if the underlying share price:

moves above the strike price, the premium is reduced by the difference.

moves above the strike price, the potential profits are limited to the premium.

moves above the strike price, the potential profits are unlimited.

drops below the strike price, the potential profits are unlimited.

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