Comments on: Selling Naked Put Options: How to Get Paid to Buy Stocks

By: JG

JG — Mon, 17 Oct 2011 20:09:30 +0000

Great strategy… if you have 25k to open up your trading account.

Is there anything that small time (1-5k) investors can get started with?

By: Arthur

Arthur — Fri, 30 Sep 2011 03:17:27 +0000

As a matter of fact, there is. It depends on how much the stock price goes up. You can buy back the covered call and sell the stock -IF the stock price has gone up enough that doing so is more profitable than having your stock called away and keeping the call premium. It will generally take a pretty significant move up for it to be worth it, but I have on a number of occasions made more money buy buying back covered calls I had sold and selling the stock upon major bullish moves up.

By: John

John — Wed, 10 Nov 2010 15:01:43 +0000

I understand that most people want to sell short term puts but it seems to me that long term put leaps have significant advantages:

1. If over one year they qualify as long term capital gain and have significant tax saving.

2. They have significantly greater time value.

3. An in the money put can always be repurchased as the put approaches expiration.

I understand that a LEAP provides a longer time for the stock to decline but if I sell LEAPs on high quality stocks I think this risk in minimal.

Where am I going wrong?

John

By: brian

brian — Wed, 20 Jan 2010 20:00:24 +0000

“only sell put option contracts at strike prices at which you would like to own the stock if called upon to do so” —that’s great, but if the stock falls below the strike price, then who would “like” to pay more for a stock than it is currently worth?????

By: G. Sayo

G. Sayo — Mon, 20 Jul 2009 22:44:22 +0000

This is also an option question, but not put option. If i sold a covered call and the stock goes over my strike price, is there anything I can do to increase my profit? G. Sayo

By: Using a Put Selling Strategy: A Step-By-Step Lesson On Selling Options - Contrarian Stock Market Investing News - Featuring Bargain Stocks

Mon, 29 Jun 2009 22:23:33 +0000

[...] selling naked put options, it can be hard to grasp how the strike prices and contract prices work together until you [...]

By: Richard Anderson

Richard Anderson — Mon, 29 Jun 2009 17:21:46 +0000

That is the great thing about selling puts…you make money if the market goes up, goes sideways or even if it goes down some. I usually sell puts that are about 5 – 10% below the current price of the stock.

By: Richard Anderson

Richard Anderson — Mon, 29 Jun 2009 17:19:40 +0000

I bought Lee Lowell’s book GET RICH WITH OPTIONS about 2 years ago. It sat on my desk for quite some time before I started reading it. After reading it a light went off in my head and I decided that I needed to start selling puts. I started the end of February and my portfolio value is up 70% now only 4 months later.

By: Selling Naked Put Options: How to Get Paid to Buy Stocks | Jutia Group

Selling Naked Put Options: How to Get Paid to Buy Stocks | Jutia Group — Mon, 29 Jun 2009 13:30:21 +0000

[...] Lowell Investment U AKPC_IDS += [...]

By: Put Selling Strategy

Put Selling Strategy — Mon, 29 Jun 2009 13:26:25 +0000

[...] selling naked put options, it can be hard to grasp how the strike prices and contract prices work together until you [...]