Selling out-of-the-money cash-secured puts is a fantastic way to buy a stock at a discount. It can be used in lieu of setting limit orders. If exercised, our cost basis is the put strike minus the put premium generated. If unexercised, we get paid not to buy the stock! For example, if a stock is […]

Rolling Up When Selling Puts To Buy A Stock At A Discount
Posted on July 2, 2016 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

Selling Cash-Secured Puts Instead Of Placing Limit Orders
Posted on April 4, 2015 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Investing, Stock Option Strategies
Selling cash-secured puts is a strategy with goals of creating monthly cash flow while retaining capital preservation as a priority. However, many of our astute members are also using this strategy to purchase a stock “at a discount” instead of setting up limit order instructions to the broker. Before highlighting the strategy, let’s review the […]

Managing Covered Call Trades While Working A Full-Time Job
Posted on March 8, 2014 by Alan Ellman in Covered Call Exit Strategies, Investment Basics, Option Trading Basics, Options Trade Execution, Stock Option Strategies
Covered call writing is a popular and potentially highly rewarding strategy geared to retail investors. But most blue collar investors work 9-5 jobs and managing investment positions can be challenging if no common sense plan is in place. The purpose of this article is to discuss ways that we can keep track of our positions […]

Types of Customer Orders plus Update on BCSI
Posted on September 19, 2010 by Alan Ellman in Options Trade Execution
When instructing our online discount broker as to the actions we want taken, we submit a customer order. These orders can take several different forms depending on our investment strategies and objectives. We can buy or sell; request a specific price or simply the best available price; we can stipulate an action given a particular […]
Podcast
- 99. Anatomy of a Reverse Stock Split
- 98. Analyzing LEAPS Options for the Poor Man's Covered Call
- 97. Managing Our Poor Man's Covered Call Trades When Share Price Drops Substantially
- 96. Protecting Our Covered Call Trades: Protective Puts and In-the-Money Strikes
- 95. Covered Call Writing to Generate Premium and Dividend Income
- 94. Covered Call Writing Net Debit Limit Orders
- 93. WHEN CALL STRIKES MOVE DEEP ITM EARLY IN A CONTRACT
- 92. Selling Deep OTM Cash-Secured Puts to Create High-Probability Returns
- 91. Portfolio Overwriting Analyzed
- 90. Entering a Collar Trade
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Beginners Corner Enhanced & Updated
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Beginners Corner Selling-Puts
- Lesson 1: What Is Puts Selling?
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- Lesson 5:puts-selling-Calculating Returns
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