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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Selling Covered Puts

Selling covered puts involves shorting 100 shares of stock, and selling an OTM put against it. This strategy is very similar to a covered call flipped on it’s axis. You can profit in a declining market by selling covered puts.  Put options give the option buyer rights to sell stock.  Puts are used when you think the stock’s price will […]

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