Comments on: Using a Put Selling Strategy: A Step-By-Step Lesson On Selling Options http://www.investmentu.com/2009/June/put-selling-strategy.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 09 Feb 2012 16:06:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: gper http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-107375 gper Mon, 09 May 2011 04:07:05 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-107375 Use a covered call strategy instead. Buy the stock (in blocks of at least 100 shares) and sell equivalent call options (1 option for every 100 shares) at the same strike price you would have sold your naked put. You will see that these two strategies are nearly identical. Use a covered call strategy instead. Buy the stock (in blocks of at least 100 shares) and sell equivalent call options (1 option for every 100 shares) at the same strike price you would have sold your naked put. You will see that these two strategies are nearly identical.

]]> By: Swapan Kar http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-98680 Swapan Kar Wed, 16 Mar 2011 21:06:56 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-98680 When a selling a naked put, what net premium you receive. Is the net premium,- the value you receive at the time of selling put minus or plus the fluctuated (as option price go up and down during the life of the option) price of the option, or you keep the whole premium if it expires out of money. I also see that my broker has not credited the amount in selling the put in my account - is that right? When a selling a naked put, what net premium you receive. Is the net premium,- the value you receive at the time of selling put minus or plus the fluctuated (as option price go up and down during the life of the option) price of the option, or you keep the whole premium if it expires out of money.

I also see that my broker has not credited the amount in selling the put in my account – is that right?

]]> By: Sean http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-86336 Sean Sun, 19 Dec 2010 00:18:03 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-86336 "Have you ever seen the price of a stock crash after bad news is released?" There is definitely risk involved with naked puts and one should stay away from this type of trade around earnings season. “Have you ever seen the price of a stock crash after bad news is released?”

There is definitely risk involved with naked puts and one should stay away from this type of trade around earnings season.

]]> By: RayP http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-84937 RayP Fri, 10 Dec 2010 16:27:30 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-84937 Selling naked options, either calls or puts comes with substantial downside risk that is not well explained in this article. What happens if catastrophy strikes and MSFT shares plummet to $10.00? Well, the seller of that $20 put is obligated to buy shares at $20.00 when they are only worth $10! How great is that? Have you ever seen the price of a stock crash after bad news is released? Selling naked options, either calls or puts comes with substantial downside risk that is not well explained in this article. What happens if catastrophy strikes and MSFT shares plummet to $10.00? Well, the seller of that $20 put is obligated to buy shares at $20.00 when they are only worth $10! How great is that?

Have you ever seen the price of a stock crash after bad news is released?

]]> By: Put-Option Selling: Treating the Market Like Your Own Personal CostcoTheSmartCapAlert | TheSmartCapAlert http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-61367 Put-Option Selling: Treating the Market Like Your Own Personal CostcoTheSmartCapAlert | TheSmartCapAlert Fri, 23 Jul 2010 20:55:47 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-61367 [...] bottom line is that a put-selling strategy is fertile ground – especially in this [...] [...] bottom line is that a put-selling strategy is fertile ground – especially in this [...]

]]> By: Put Selling Strategy | Ultimate Hot Stocks Info http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-47203 Put Selling Strategy | Ultimate Hot Stocks Info Sat, 15 May 2010 15:10:52 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-47203 [...] Continue reading here: Put Selling Strategy [...] [...] Continue reading here: Put Selling Strategy [...]

]]> By: Janelle http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-41475 Janelle Wed, 07 Apr 2010 16:08:41 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-41475 One thing to keep in mind when selling puts is that if the stock price drops and you are obligated to buy the stock, you can then turn around and start writing covered calls on those shares. So you will have a stock that you want at the price you wanted it for and begin receiving income for owning it. And if your call option is exercised, you're selling at a profit and can start over again. One thing to keep in mind when selling puts is that if the stock price drops and you are obligated to buy the stock, you can then turn around and start writing covered calls on those shares. So you will have a stock that you want at the price you wanted it for and begin receiving income for owning it. And if your call option is exercised, you’re selling at a profit and can start over again.

]]> By: SYED http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-33255 SYED Wed, 06 Jan 2010 20:54:01 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-33255 Great job! I only sell puts on ETFS and some stocks I like to own cheaper. You mentioned in you writing above that repeat this monthly. I sell mostly puts expiring in 9 to 12 months on margin 10 to 15% below stocks market prices. Generally I collect 10 to 11% premium a year but because of margin I make 20 to 25%. I want to collect more money. Is selling puts on long expiry dates give more premium than with 1 or 3 months expiry. Make sure you consider broker's commissions when you calculate net annual percentage of premium collected. Waiting for your reply. Thaks very much. Great job! I only sell puts on ETFS and some stocks I like to own cheaper. You mentioned in you writing above that repeat this monthly. I sell mostly puts expiring in 9 to 12 months on margin 10 to 15% below stocks market prices. Generally I collect 10 to 11% premium a year but because of margin I make 20 to 25%. I want to collect more money. Is selling puts on long expiry dates give more premium than with 1 or 3 months expiry. Make sure you consider broker’s commissions when you calculate net annual percentage of premium collected. Waiting for your reply. Thaks very much.

]]> By: Douglas Pereira http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-28695 Douglas Pereira Sun, 01 Nov 2009 18:26:41 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-28695 I think a "covered" put would be writing a put on shorted shares. I think a “covered” put would be writing a put on shorted shares.

]]> By: C Lind http://www.investmentu.com/2009/June/put-selling-strategy.html#comment-28325 C Lind Tue, 27 Oct 2009 15:54:57 +0000 http://www.investmentu.com/IUEL/2009/June/put-selling-strategy.html#comment-28325 Thank you for the clarity on the nuts & bolts of the naked put! What is the median life span [purchase/execute to expiration] of these trades as prescribed by the Instant Money Trader? Thank you for the clarity on the nuts & bolts of the naked put! What is the median life span [purchase/execute to expiration] of these trades as prescribed by the Instant Money Trader?

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