This is part 2 of Demystifying Options... If you are not familiar with options, I would suggest reading my first post: Demystifying Options Part 1. A short recap on the types of options available... There are 2 types of options - Put option and Call option. You can buy and sell both of them. This post will be discussing about SELLING put options. I noticed that some authors are not clear about the terms in their postings. They would say they are buying options when in fact they are selling options and if you follow them blindly, it could be a costly mistake. There is a BIG difference between SELLING options and BUYING options. It is very important that you understand what you are doing before you execute the trade, otherwise it is almost guaranteed that you will lose money. Selling Pu