If Tencent $TENCENT(00700)$ share price holds above the strike price through expiration, the options expire worthless and you get to keep the premium as income.
Moreover if you are looking to accumulate more Tencent shares, selling puts can be an efficient to buy the stock at a lower net cost.
If Tencent's share price drops below the strike price, you will be obligated to purchase the shares at that price. Owning Tencent's shares at a discount can be viewed as a long term value play.
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Modify on 2025-05-15 12:57
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- zumaΒ·05-16thx1Report