clarenceng
2022-03-26

I have been using options for a year selling puts mostly. It is a good way to get free cash(premium) and as long as the share price do not drop below the target price, u keep the cash. If it drops below, you will need to buy 100shares of the stock, so make sure you are willing to do that and have spare cash at the sides.

Hope it helps begineers

Options Hub
Welcome to Tiger Options Hub! Here you may talk and learn about all things on options trading!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • BellaFaraday
    2022-03-26
    BellaFaraday
    Maybe I'll try it next Monday.
    • BuzzyReplyBellaFaraday: 
      Wow u can afford 100 shares of NVDA. Nice.
    • BellaFaradayReplyclarenceng: 
      Thanks for the guide, I will try it on nvidia.
    • clarenceng: 
      Try on a stock you like. With lower price target so that if you are assigned then you dont have to put in too much cash to buy
  • MR_Wu
    2022-03-26
    MR_Wu
    Is the method of selling put options risky?
    • MadreReplyclarenceng: 
      Rougly what’s the esrimate to look out for on delta value?
      How far do you buy from the current price -30% ok?
      On expiration if the price doesn’t drop below target price, will the option be auto close?
    • clarenceng: 
      sometimes its hard to predict market but if stable, and u dont expect the price to drop, i would say it is quite alright. i always make sure the the premium is justified. Try looking at delta value
  • MortimerDodd
    2022-03-26
    MortimerDodd
    Thank you for sharing your options trading experience.
  • Buzzy
    2022-03-31
    Buzzy
    When get assigned is headache. And need to maintain margin.
  • hothead93
    2022-03-29
    hothead93
    do you mean the money that you place in the option will turn into stock holdings if it drops below?
  • FangZH
    2022-03-29
    FangZH
    Great ariticle, would you like to share it?
Leave a comment
2