Put selling 101:
Considering selling a put? Just like long stock it can be good to do this on a pullback
Aim for 40-50 days to expiry. Theta decay will thank you
I like selling approx 15-25 delta
Look to close at 50-80% profit. Easiest gains vs risk.
pt.2
Considering selling a put? Just like long stock it can be good to do this on a pullback
Aim for 40-50 days to expiry. Theta decay will thank you
I like selling approx 15-25 delta
Look to close at 50-80% profit. Easiest gains vs risk. pt.2
Trade mgmt:
Generally don’t hold to expiry. If still like the position roll to next month (take in more
) >2 weeks to expiry
Price going against you? You can roll ‘down’ (lower strike) & out (further out expiry) for a credit, which reduces risk & lowers break even
Generally don’t hold to expiry. If still like the position roll to next month (take in more
) >2 weeks to expiry
Price going against you? You can roll ‘down’ (lower strike) & out (further out expiry) for a credit, which reduces risk & lowers break even
start small: choose a PLTR or AAPL before an AMZN
what’s the worst that can happen? sell 1 Put & end up long 100 shares at the strike sold
So sell puts on companies you like Eg. “I’m bullish on NET so I’ll sell a $65 put as I’d like to own shares at this price”
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