Market Wake Up Call - Put Option Trading - Lee Lowell

[Hifimusicman]

There is no such thing as a guaranteed investment. He's correct to say that if you sell a 'put' option and the price remains above that option price you win. However to say that if the price falls below the option price and you are obligated to buy the stock 'cheap' is also a win is wrong.This is not a win/win situation.The stock has fallen to a price below the option price for a reason! You're obligated to buy a falling stock which may continue to fall after you've bought, increasing your loss.

[UberVersatile]

This is not a tripple win for the casual trader...Are you trying to trick people or is this a channel for professional traders?

The risk here is obviously if people aren't watching the stockmarket every day and the stock plumits from 20 to 10 dollarsi n one day and you've bought stocks for 15 dollars.