As contract expiration nears, we must be prepared how to manage our in-the-money (ITM) cash-secured puts. Assuming we initially sold an out-of-the-money (OTM) put which is now ITM, share price has declined. We can assume that by following the BCI guidelines for position management, the current stock price is not more than 3% below the […]

In-The-Money Cash-Secured Puts: Allow Exercise or Roll the Option When Using the PCP Strategy?
Posted on November 16, 2019 by Alan Ellman in Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies

Selling In-The-Money Puts to Generate Higher Premiums: Evaluating a Real-Life Trade
Posted on February 18, 2017 by Alan Ellman in 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 assessment, chart technicals and personal risk tolerance will ultimately guide us to the […]

Using Put-Selling To Enter A Covered Call Trade At A Discount
Posted on December 13, 2014 by Alan Ellman in Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Combining covered call writing and selling cash-secured puts into a multi-tiered option strategy is one way to hedge against bear and volatile market environments. In my book, Selling Cash-Secured Puts, I refer to this as the PCP or put-call-put-strategy. First I will give a general overview of the strategy and then an example using specific […]
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