You would be forced to buy it there, however, this is still a great value investment, taking you agree with Morningstar's valuation of ebay. The whole article is premised on the fact that 1) ebay is a wide moat company that 2) is undervalued. Morningstar places the value of ebay at $44, so even if you are forced to buy at $35, you're still gaining.
The theory is that if the option is never exercised, you still make out on the option contract, but if it is exercised, then you, for a cost of $29.10, are getting a stock you value at $44. (Mr. Buffett would be drooling right about now).
This method only makes sense on true value opportunities and allows you to benefit from both the value of the under priced stock, as well as profiting from the option contract. If you think the stock is only worth $30, a $35 put makes no sense.
