Mar 11, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Whether I am selling call or put options I prefer to use a cash account. That’s where we invest and utilize only our own cash to purchase stock and secure put trades. More aggressive investors may want to magnify their returns by leveraging margin accounts. This...
Feb 18, 2017 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling Cash-Secured Puts can be used to accomplish several goals; Generate cash flow Buy a stock at a discount Used as part of a multi-tiered option selling strategy along with covered call writing (PCP strategy) Our strategy goal along with overall market...
Apr 16, 2016 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling
Covered call writing and selling cash-secured puts are similar strategies that do have certain differences. In my book, Selling Cash-Secured Puts, Figure 68 on page 214 highlights the similarities and differences between these two strategies. In this article, I will...
Feb 20, 2016 | Investment Basics, Option Trading Basics, Put-selling, Stock Option Strategies
The PutWrite Index (“PUT” or “$PUT) is an index created by the CBOE (Chicago Board options Exchange) which acts as a benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) put options against...
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...
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