Covered Put Explained

A Covered Put has less risk than selling 100 shares of stock. The strategy is completely the opposite of the covered call.  This strategy is used by traders that has a bearish assumption. That means that they use this option strategy for stocks that may drop in price. The way you set this strategy up is by shorting stock and selling its associated put […]

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Covered Puts Explained

Selling covered puts is a bearish options trading strategy.  The traders idea is to sell 100 stocks short and also selling in-the-money put. You will receive option premium for the put option you have sold. You can keep the credit if the market price is above the strike price at expiration. When the stock price goes down and below you […]

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