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

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  • BellaFaraday
    ·2022-03-26
    Maybe I'll try it next Monday.
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    • BuzzyReplying toBellaFaraday: 
      Wow u can afford 100 shares of NVDA. Nice.
      2022-03-31
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    • BellaFaradayReplying toclarenceng: 
      Thanks for the guide, I will try it on nvidia.
      2022-03-27
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    • 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
      2022-03-27
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  • MR_Wu
    ·2022-03-26
    Is the method of selling put options risky?
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    • MadreReplying toclarenceng: 
      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?
      2022-03-29
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    • 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
      2022-03-27
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  • MortimerDodd
    ·2022-03-26
    Thank you for sharing your options trading experience.
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    • clarenceng: 
      You are welcome
      2022-03-27
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  • Buzzy
    ·2022-03-31
    When get assigned is headache. And need to maintain margin.
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  • hothead93
    ·2022-03-29
    do you mean the money that you place in the option will turn into stock holdings if it drops below?
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  • FangZH
    ·2022-03-29
    Great ariticle, would you like to share it?
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  • cykhor
    ·2022-03-27
    还在学习当中。。
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  • snugglo
    ·2022-03-27
    It indeed helps me alot.
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