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 […]

Read more

How to benefit from Covered Puts

Traders can profit in a declining market by selling covered puts.  Put options give the option buyer rights to sell stock to the option seller for a certain price.  Traders using put options when they think the stock’s price will go down. You can cover puts when you sell (short) an equal amount of stock. It is therefore considered a […]

Read more