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@Optionspuppy：🏅👌☝️😂🏦x2 money sell $Vanguard S&P 500 ETF(VOO)$ put options earn 9% in 6 months Certainly! If I were to double my money from 17500 USD to 35000 USD, one strategy I could consider would be selling a put option with a strike price of 360 USD and an expiry date of 6 months away from today's date (April 12th, 2023) at a premium of $13.30. When we sell a put option, we receive a premium from the buyer of the option. In this case, the premium received is $13.30 per share. It's important to note that options are traded in contracts, with each contract representing 100 shares of the underlying asset. So, if I sell one contract, I would be obligated to buy 100 shares of the underlying asset at the strike price of 360 USD if the option is exercised. This means that the real value of the option is $1,330 (i.e., $13.30 x 100 shares), and I would need to have enough capital to cover the purchase of 100 shares at the strike price of 360 USD. This would require $36,000 in capital ($360 x 100 shares). If the option is exercised, I would need to purchase 100 shares of the underlying asset for $36,000, regardless of the current market price. This means that if the market price of the asset falls below 360 USD, I would incur a loss. However, if the market price of the asset stays above 360 USD, the option will expire worthless, and I will keep the premium of $1,330 as my profit. To calculate the potential profits and losses, we can use the following formulas: Maximum Profit = Premium Received x Number of Contracts x 100 Maximum Loss = Strike Price - Premium Received In this case, the maximum profit would be $1,330, which is the premium received. The maximum loss would be $346.70 per share, which is the difference between the strike price of 360 USD and the premium received of $13.30. So, the maximum loss for one contract would be $34,670. To express the potential profit and loss as a percentage, we can use the following formulas: Maximum Profit Percentage = (Premium Received / (Strike Price x Number of Contracts x 100)) x 100% Maximum Loss Percentage = ((Strike Price - Premium Received) / (Strike Price x Number of Contracts x 100)) x 100% Using these formulas, the maximum profit percentage would be 3.69%, and the maximum loss percentage would be 96.31%. It's important to note that these calculations assume that we are only selling one contract. If we were to sell multiple contracts, the potential profit and loss would be multiplied accordingly. It's also important to note that these calculations do not take into account any transaction fees or taxes that may be associated with the trade. Overall, selling a put option can be a profitable strategy if done correctly. However, it is important to understand the potential risks and rewards associated with this strategy. The potential profits and losses of a trade should always be carefully considered before making any decisions 🐯 🐯🐯🐯🐯🐯 Dear tiger readers Please help to share post also clicking the repost button and follow me as I published my post on my ideas and trading experiences and sometimes including my current dividend positions and winning sell call and put trades . 🦁🦁🦁🦁🦁Do follow me share my posts regularly So more people can learn about my trading methods and winning trades on selling covered calls and puts options I share my options trade below usually I sell at a higher price then buy back at a lower price for a profit I also try to reward the first 100 commenters at least 1 coins each who also help me repost and like the article 🌈🌈🌈🌈🌈🌈🌈🌈 As always do your on due diligence and tradings have risks Do feature me @Daily_Discussion @MillionaireTiger @TigerStars @Lord_Kuberan @MiniAce so more people learn sell cash covered put on good stocks and earn 1% or more per month 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.
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