Put Option Writing | Stock Option Strategies

http://www.Zacks.com - Put Option Writing: Learn how to get paid whether the stock goes up or down and potentially get your stock at a cheaper price.

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[jlopez8295]

Thank You I will save this address and keep it handy till it sinks in, you helped me wrap my head around the put

[maclovindotca]

@veXati0n You would want something close to the market price if: You want to acquire the stock at a slightly cheaper price and create a buffer with the premium.

You write lower strikes if you don't want it to exercise and your goal is the collecting the premium only. Also you wont get as much premium on lower strikes.

Any time you place an options trade you should accept both possibilities.

[veXati0n]

@maclovindotca You are correct, but why would someone write a strike price so close to the current price? The point of writing a put is to write a strike price that is considerably lower than the current price...

[maclovindotca]

People say writing puts is risky because the stock could go from 9.50 to $5 and you would have to sell it at $ 9 ($9 strike), how is this risky when you were prepared to buy it at the market of 9.50.

[gurujr]

Great income and 2nd income producer with selling puts. For those who do it what is the average monthly percent one can expect from receiving the option premium. If I can get 2.5% to 4% I'd be very happy.

[924142707]

Conceptually it makes a lot of sense if you want to get a stock cheap. If the stock is at 30 and you sell a put for 20 and it hits 20 then you will collect a premium and get the stock you want at the price you want. Puts can be very open too though so do your research as I'm doing now!

[professor314]

Great video. One thing to note, however, is some online brokers won't let you sell options unless they think you know what you are doing. Example: You have to be approved for option trading on etrade and naked put options is a level 3 option trade. I did like the graphics and explanations in the video, I never really thought about this as a way of getting a stock for cheap, I would always dump my position before expiration if it was in-the-money.

[dkjan]

Great. Thanks so much

[grecco208]

THIS VIDEO WAS GRAET!