Ive a scenario im wondering about.
If I owned 100 XYZ shares I bought for $40 and also purchased a 40 Strike Put Option for 100 shares to hedge my position.
if XYZ shares now dropped to $30,
My Put option has also gained $10 of Intrinsic Value??
So therefore rather than exercising my option to sell shares at $40 cant I sell the Put to get $10 Intrinsic Value + Time Value???
So in effect I get the same result without brokerage + any Time value??