Probably one of my most favorite investing strategies has to be
Selling Puts whether as naked puts or cash secured puts.
In its most basic terms when I sell put contracts, I am
selling someone the legal right to assign (or put) shares to me
at the strike price I have agreed to. It's called "Naked"
because when I sell the naked put, I have "exposed" myself to
assignment and I do not own the shares I have sold the naked put
against - so I am naked the shares.
Like any strategy
there are pros and cons, but the naked put option trade is not
risky, it is the investor who blindly sells puts without
understanding the strategy that makes it risky. I hope you enjoy
some of these articles.
April 26
2011 / Strategy Article - Selling Stock Options -
Put Selling
Why Sell Puts?
Selling Puts As An Investment Strategy Read
Article
Apr 22 2011 / Stock -
IBM
Tools For Picking Put Selling Strikes
No Free Money Here.
Strategy
Article
April 12
2010 / Strategy Article - Naked Puts
Understanding Selling Puts
This
is a brief introduction to understanding what is selling
puts and how it is used in a trade. This brief outline
will assist in forming a basis by which an investor can
then expand their knowledge to determine the suitability
of puts selling for their investing objectives.
Read Article
March 12
2010 / Strategy Article - Naked Puts
Example Trade
Selling Puts
Here's a good place to
start when learning about selling puts. In this example I
demonstrate selling puts on a stock.
Read Article
April 2
2011 / Opinion Article -
Why I Believe
Selling Puts Is Superior To Covered Calls
Over 35 years ago when options on many stocks were
just getting started I was introduced to put
selling as a means to lower my overall cost of entry
into a stock. However as the years have passed I
have developed various strategies that have shown to
me how flexible and truly exceptional selling puts are
in the arsenal of investing. Leaving aside tax implications involved in covered calls and
selling
puts, I believe naked put selling is far superior to
covered calls and here are my 10 main reasons.
Read Article
Apr 1
2011 / Strategy Article
Selling Puts For Profit And Avoiding Assignment
The 13 Rules I Use
Selling puts for income is my favorite
strategy.
But I found that
selling puts without ever wanting to own the
shares of the underlying stock needs a solid strategy in
order to be consistently successful. Here are my 13
rules which I established many years ago in order to
profitably sell put options every month while
avoiding assignment.
Read Article