Put options don't make sense
 

So if they supposedly give you a "right to sell at a set price even if the price goes down", then, who is going to be forced to pay that higher price? What, are they sending all of those out of work floor traders out to kidnap and mug people?

The other side pays and you collect that is true of a put option or a call option.

It looks like the bankers are mugging people directly these days...

Well, I was thinking that they must have to be matched some way, but if the guy on the other side has a call option- and doesn't exercise it (why would he) ... how does it end up matching?

That's for fucking sure
They are so crooked on so many levels it's just difficult to imagine it being real

same as a short sale, you have to buy at any price t pay back the share you borrowed.

when the market crashed in 2008, several banks were left without counterparties to their trades, but usually the bank is on the hook.

That is why large positions need to be monitored.

For every option you buy or sell there is a counterparty. You pay them the premium.

The writer of the option.

When you bought it some one sold it. So you are long and he is short. It is a business like book making.

same as a short sale, you have to buy at any price t pay back the share you borrowed.

when the market crashed in 2008, several banks were left without counterparties to their trades, but usually the bank is on the hook.

That is why large positions need to be monitored.

Paper trade to test, but most likely you'll make more money selling options than buying them. Most of the time they expire worthless. Just make sure you can cover if they don't.