What If There Is No Premium Selling Put Options

https://ihavesuccess.com Get free stock option tools & resources to help you be profitable trading stocks & options from selling cash secured puts to more advanced strategies! What If There Is No Premium? - Selling Put Options 🔴 Subscribe for more free stock & stock options tips: /c/IHaveSuccess My favorite stock research tool: https://finbox.com/?r=9c26843 Share this video with a friend: /watch/QVwTexZTqjpTT Options Playlist for BEGINNERS: /playlist/PLRPfhj-RanVEFhi1m-bUYwSWsEpU2_SuC Watch next: Trading Stock Options 101 For Stock Beginners: Options Trading For Beginners - Stock Options Explained For Beginners (Option Trading Info) /playlist/PLRPfhj-RanVGHwEC_3tfA_cVhpA8PJq0e Recommended playlist: Selling Cash Secured Put Options: Sell Put Options For Income (Sell Put Options Explained For Beginners) Options Trading Put Strategy - Put Options /playlist/PLRPfhj-RanVHBSil0eXETujQu9jMIKlqD With the strategy of selling cash secured put options on a stock that you would be okay owning the rest of your life, if you had to, you help mitigate these three problems. Let’s first define what selling a cash secured put option is then look at how this strategy makes the problems above easier to deal with. A put option is a legal contract that gives the buyer the right to sell stock at a predetermined price (called a strike price) during a curtain time period (known as the expiration date or days till expiration). There is a cost to this legal right the buyer pays to the put option seller called a premium. The seller of the put option has the legal obligation to buy the shares of stock from the put option buyer under certain circumstances. Cash secured means the put option seller has the money to fulfill this transaction. Since 1 put option equals 100 shares of stock you need to have enough cash to purchase 100 shares of stock for your position to be cash secured. If you do not have enough money to purchase 100 shares you are selling a naked put option. When selling cash secured put options you are acting as a stock insurance company, ensuring a stock owner can sell their stock to you at a predetermined price so it’s wise to choose stocks that you would be okay owning the rest of your life. In general selling options gives you more flexibility to be profitable even if you are incorrect with the direction of the underlying stocks movement because as the put option seller you were paid the premium upfront! Also as an option seller time works in your favor whereas the option buyer has time working against them. This is known as Theta Decay and it is part of the stock option Greeks that a buyer needs more understanding of to be profitable. However as a cash secured put option seller you are able to be profitable without even knowing what the stock option Greeks are! Finally when you sell a cash secured put option on a stock you would be okay owning the rest of your life the outcome at expiration day does not matter. Either the put option expires worthless allowing you to keep the premium or you purchase a stock you are comfortable owing AND you keep the premium! You win in either outcome at expiration date! If the put option expires worthless you sell another cash secured put option. If you purchase the stock you can begin selling covered call options against the stock you just bought. It’s even better if the stock pays you a dividend so you can earn even more income! Selling cash secured put options will allow you to learn important fundamentals of the stock & stock options market while earning income and building up your options trading experience needed to be profitable in more advanced options trading strategies. cash secured put options, cash secured put strategy, cash secured puts, cash secured puts to generate income, guide to selling put options, put options, put options trading for beginners, put strategy, sell option premium, sell options, sell put option premium, sell put options, sell put options for income, sell put options robinhood, selling cash secured put options, selling cash secured puts, selling put options, selling put options for beginners, start selling put options

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