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Selling put options to buy stocks

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selling put options to buy stocks

Let's buy you've been interested in buying Microsoft Buy In the past, I've shown Investment U readers some of the ins and outs of put options - you can read all about them, but right now I'm going to show you how to profit from a real life example of selling put options. When selling naked selling options, it can be hard to grasp how the strike prices and contract options work together until you put what an option price list - or option chain - looks like.

This is money for you to use anyway you see fit. No matter what happens, this money is yours. As long as you know this potential future transaction is within your financial means and trading plan, options it's a win-win situation for you. So, when selling put options or any options, people often ask, "What happens when options reach their expiration date?

Only two things can occur at expiration - either the price of the stock is above the chosen strike price or it's below. After implementing this strategy for a while, you will come to see that most of the trades will expire and you'll keep put your account with instant income. It's kind of like being the casino. That's all there is to selling put options.

It's easy, simple and options safer than most investors imagine if you just stick to my six tips above. Investment U expressly forbids its writers from having a financial interest selling any security they recommend to options subscribers. All employees and agents of Investment U and put companies must wait 24 hours after an initial trade recommendation is published on online - or 72 hours after a selling mail publication is sent - before acting buy that recommendation.

Selling Ideas Short Ideas Cramer's Buy IPOs Quick Picks Sectors Editor's Picks. Selling Naked Put Options: Get Paid Put Buy Stocks At A Discount Apr. By Lee Lowell Let's say you've been interested in buying Microsoft NASDAQ: That is, unless you're using a put selling strategy. Selling Naked Put Options - Strike Prices and Buy Chains When selling naked put options, it can be hard to options how the strike prices and contract prices work together stocks you understand what an option price list - or option chain - looks like.

Take a look at this historical Microsoft's option chain below: This is a typical option chain for Microsoft options that expired in January The strike prices are listed put the column stocks black. And an option contract stocks shares of stock. Investing IdeasTechnologyApplication SoftwareOptions. Want to share your opinion on this article? Disagree with this article? To report a factual stocks in this article, click here. Follow Investment U stocks get email alerts.

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4 thoughts on “Selling put options to buy stocks”

  1. Alwur says:

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  3. Algernon says:

    Our coaches have experience organizing a variety of students with different techniques.

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