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 sells calls and puts

Traders sell calls and puts depending of their assumption. They will receive option premium upfront by selling options. In this yield-seeking environment, selling options is a strategy designed to generate current income. We sell options with high implied volatility. We want the option to expire worthless or we buy them back when they are much cheaper. If you the options […]

Read more

Selling puts for huge income

Selling puts is an essential part of options strategies. Selling a put is a strategy where an trader writes a put contract. By selling the contract the put buyer has the right to sell stocks for a certain price. Selling options is advantageous to an trader, because the option trade has a higher probability of profit and she will receive […]

Read more