Comments on: Selling Put Options: How It’s Done and How Easy It Can Be

By: How The Investment Strategy of Selling Put Options WorksTheSmartCapAlert | TheSmartCapAlert

Wed, 03 Nov 2010 15:10:23 +0000

[...] you sell a put option you immediately receive cash in your account. It’s like “free money”… for a while [...]

By: LEAP Bear Spreads: If You Want to “Go Short,” This is the Way to Do ItTheSmartCapAlert | TheSmartCapAlert

Fri, 06 Aug 2010 19:53:34 +0000

[...] gains from a stock’s downside, think twice before going down the “short road.” Instead, use put options to accomplish the same thing, but with less cost and less [...]

By: Five Commodities Are Poised For Big Moves… Are You Ready For Them?

Five Commodities Are Poised For Big Moves… Are You Ready For Them? — Fri, 11 Jun 2010 19:25:04 +0000

[...] where selling put options comes in [...]

By: Five Commodities Are Poised For Big Moves… Are You Ready For Them? | Proinvests.com

Tue, 13 Oct 2009 15:51:48 +0000

[...] where selling put options comes in [...]

By: Commodity Futures

Commodity Futures — Mon, 03 Aug 2009 15:59:53 +0000

[...] And by selling put options, it allows us to collect the option premium, while having an opportunity to buy natural gas at unbelievably low historical levels. Check out this article for more information on how to sell put options. [...]

By: barbara

barbara — Sun, 19 Jul 2009 18:58:26 +0000

If the stock goes lower than the price you sold it at you can always roll it over. I just did that with a put I had. I still am making money on the put.

By: chiranjeev chatry

chiranjeev chatry — Wed, 15 Jul 2009 19:26:34 +0000

I have subscribed just for enjoying it but when i went through your article it influenced me . Previously i have confusion about options but really your article cleared my doubts.Thanks a lot.I will definitely wait for such articles.

By: Frank H

Frank H — Wed, 15 Jul 2009 16:31:32 +0000

Re: Lee Lowell’s “Put Options Strategy.”

I agree writing put options can be a good strategy. Many years ago I experimented and learned quickly that most options expire worthless. At that time I was approved by a broker to write them which showed some profit.

However, I believe with today’s rules and regulations it makes it very difficult for a person to get approved higher than writing covered call options.

When banks started to get in to investments, I opened an investment account for fifty thousand with a bank that I have been a customer for many years. I also had about fifty thousand in savings in one form or another with them. I could not get approved any higher than writing covered calls with them.

I have not pursued to find out what dollar amount would be needed in an account to qualify to write options but it must be more than the average small investor. Your program must be for millionaires.

Frank

By: Steve

Steve — Wed, 15 Jul 2009 00:40:53 +0000

<>
The risk is a downturn that drags all boats lower, making you honor the contract as the stock drops lower than the strike price……think October, 2008, or November 2008, or March 6th, 2009.

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That is 1500 shares of some stock ($30/share put value=$45,000) versus a gain of
$825 or 1500x$.55, that you are wagering will expire before the strike price (say $30) occurs. You now have to buy 1500 shares to cover the contract and tie up $45,000, that may be in a stock trying to set new yearly lows.
In this example you risk $45,000 (all or part) to make $825.

Those odds don’t look very good to me since a $.02 positive move in the share price is higher than the $825 “put” risk.

By: How to sell put options | Stock Capitalist

How to sell put options | Stock Capitalist — Tue, 14 Jul 2009 23:43:25 +0000

[...] ORIGNAL ARTICLE [...]