### Comment:
Ohhhhhh, well shit I feel dumb, since that seems obvious now... someone sold the put and someone bought the put, that's the contract. The seller is betting it wont go down, but the buyer is betting it will and by a lot. 
  
 Now, do I need to have the stock already in hand, or will it automatically buy at 35 and sell to him at 40 if the strike price is hit on the strike price i bought?

### REPLY:
And options contract gives the buyer the option and the seller the obligation. If you don’t exercise your right by the expiration date, then nothing happens. You can also sell your contract to close your position.

### END.