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Does Selling Put Options During a Market Downturn Provide a Safety Net?

KITCO2022-07-11

In a significant market downturn, bearish sentiment, if not outright fear, can drive down the share price of good companies rather drastically. When the market is in a sustained selling mood, there ...

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Comment15

  • HHM13
    ·2022-07-11
    Yes! It lowers the risk when selling put than actually buying the stocks. 
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  • cub1
    ·2022-07-11
    Thanks for sharing.
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  • cub1
    ·2022-07-11
    Thanks for sharing. 
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  • Looyusooi
    ·2022-07-11
    Ok 
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  • dnp
    ·2022-07-11
    Well say. Tq very much for sharing
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  • John.sw
    ·2022-07-11
    Ok
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  • Simonnov
    ·2022-07-11
    Ic
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  • ETT
    ·2022-07-11
    I came across and learnt about options a while back and have started employing this strategy. I think it's a good way to generate cashflow while getting the stocks at a discount
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  • LazyTitan
    ·2022-07-11
    Gd read
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  • Fadzli13
    ·2022-07-11
    Very good advice. I am trying my hand at selling put options too. My approach:1) look at companies you believe in. A put, after all, means that you believe that the share price not drop below a certain amount. 2) look at companies YOU CAN AFFORD. This is not a game: while we can always buy back the option (to cut losses, ostensibly) closer to expiry, you must always assume a worst-case scenario, which is that you must buy a lot of 100 shares if the said stock. So make sure you can afford it to avoid unnecessary trouble. 3) same as (2), but look at companies you believe it. After all, owning 100 shares of a company you believe in will always be a good thing. Just make sure you don't overextend your finances while doing so!Would love to hear your perspectives too. 😃
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  • Zeniv
    ·2022-07-11
    Thanks
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  • Dragonbody
    ·2022-07-11
    [Miser] 
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  • Elsontok
    ·2022-07-11
    like please
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  • BillionaireN
    ·2022-07-11
    Great
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  • DailyTrader7
    ·2022-07-11
    Good read
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