Dec 5, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
One of the practical applications of selling cash-secured puts is to buy shares “at a discount” In my books and DVDs I use out-of-the-money puts in lieu of setting limit orders in order to accomplish this goal. Some of our members have inquired about using...
Sep 5, 2015 | Covered Call Exit Strategies, Exchange-Traded Funds, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling out-of-the-money puts and using top-performing SelectSector SPDRs can be combined to design an extremely defensive option-selling strategy in a volatile market environment like we are currently experiencing. Using Inverse Exchange-traded Funds is another...
Aug 8, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
The index short put strategy is a form of selling cash-secured puts. It is a bullish strategy with the goal of generating premiums selling put options that expire worthless. Traditionally, at-the-money strikes are sold. As opposed to using stocks and exchange-traded...
Jul 11, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Covered call writing and put-selling generate monthly cash flow with the inherent risk of share depreciation. One of the major advantages of these conservative strategies is that they can be tailored to all market environments. In today’s article I will address...
Jun 13, 2015 | Exchange-Traded Funds, Investment Basics, Put-selling, Stock Investing, Stock Option Strategies
Exchange-traded funds (ETFs) offer covered call writers and put-sellers the advantage of instant diversification and generally have a lower implied volatility associated with them compared to individual stocks. Whether we are dealing with stocks or ETFs each security...
Jun 6, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
When studying covered call and put-selling option prices we learn that the market will correct any potential arbitrage opportunities. Arbitrage is the simultaneous purchase and sale of an option in order to profit from a difference in the price. It exploits price...
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