Intramarket Sector Spreads Put sellers hold a "short" expecting the market to move upward or at least stay stable A worst-case scenario for a put seller is a downward market turn. It's a bad idea to use this strategy as a form of speculation, in other words selling a put for the premium just because you think a stock will never get to a lower strike by options expiration. Our momentum stock picks can and will continue to be quite profitable. Options can be embedded into many kinds of contracts.
As promised in my previous post, Why I Sell Put Options Part Iin which I shared why I never set these types of orders and my reasoning, here is Part II. In this post I will show you the benefit of writing naked put options on 40 popular leveraged ETFs. To understand this post you'll need somewhat of a background in stock options.
To learn more about options and, how options can help protect your portfolio, and allow you to speculate with less money up front click here. If you're finding this post for the first time and don't know the benefits of selling put options compared to setting market and limit orders, you may find it valuable to read Part I.
If you're following up Part I, you'll notice writing naked puts on these leveraged ETF's bring much greater premiums. NOTE: When using this strategy, I first decide what I am willing to selling a put option 39 for the ETF. The first ETF listed in the table below is the Direxion Daily Financial Bear 3X FAZ. An example of this option strategy on the FAZ would be interpreted as: Sell the Direxion Financial Bear FAZ August 39 put option. All of these options expire on August 22; therefore the last trading day is Friday, August 21, I've been using this strategy to purchase my shares and I find it has been working well.
It's a bad idea to use this strategy as a form of speculation, in other words selling a put for the premium just because you think a stock will never get to a lower strike by options expiration. To learn more about selling puts and other option strategies check out my option trading books. All data as of market close Monday July 20, HOW TO READ THE TABLE NOTE: When using this strategy, I first decide what I am willing to pay for the ETF.
Abbreviations used in table:. Price: The most recent closing price last quote price for the ETF. Cost: Selling a put option 39 is the adjusted cost for the ETFif you do happen to end up with the shares at expiration. Disagree with this article? Follow Option Maestro and get email alerts.
sell Put option strategy part- 4 hindi
Consistent monthly option system. Averaging 10%% returns monthly. Options: Calls and Puts. Selling an option is also referred to a stock for the period of time covered by the option. Put sellers hold a "short. ISSUE OF A CALL OPTION OVER THE Fair value is defined in IAS 39 paragraph 9: “Fair value is the amount for which an asset could be exchanged.