ALECTO CO (PILOT 12)

We bought a put and therefore it is our choice as to whether or not to exercise it (and we will only exercise it if we make a gain). We sold a call, and therefore it is the person who bought it from us who decides whether or not to exercise it. They will exercise it if they will make a gain and if they do exercise it then it is us who will have to pay them (i.e. a loss to us).

It is only when creating a collar that they will be selling an option as well as buying an options. Otherwise they only ever just buy options.