Make Money when others don't

Selling puts....
Yes that is right. By selling puts we can own shares for far less than current market. If wanted nothing more than to buy your favorite stock for 10% or more savings, this is the strategy for you. If you want to simply trade to make money this can work too.

Take a stock that you wont mind owning and in fact thinking about buying, and sell a put. Take for example a 30 dollar stock, this would cost you 3000 to own. Now if the stock goes up up and away, then we lost out on an opportunity. If the stock drops down and we get assigned, then we own the stock for less because we generated premium from the original sale of the put.

Now here is the fun part, if you buy back the out before you get assigned and sell the next month, then you can do this a few times and maybe even end up owning the shares for free.

Give it a virtual try and see

Tell a friend.