Selling Short Put Options.
By selling a put option, you are giving an option holder the right to sell an underlying stock or index at a particular strike price. Option sellers have obligations. Buying a put option requires the payment of a premium. The seller of the option gets to keep this premium as a gain if the option expires worthless. A trader who sells put options (also called the put writer) believes the market will rise.
In a flat to rising market, written puts (the selling short of put options) can provide a trader with extra income. If at expiry the price of the underlying security remains above the strike price of the put option, the put will expire worthless; a put seller will benefit by keeping the entire premium received when the option was sold.
One single winning trade
DISCLAIMER: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered options trading involves greater risk than stock trading. You absolutely must make your own decisions before acting on any information obtained from this Website.
The return results represented on the web site are based on the premium received for the selling options short and do not reflect margin. It is recommended to contact your broker about margin requirements on uncovered options trading before using any information on this web site. Use our "Trade Calculator" to recalculate our past performance in relation to the margin requirements, brokerage commissions and other trading related expenses. Past performance is not indicative of future results.
Risk Statement: Naked options trading is very risky,
many people lose money trading and losses can exceed the amount invested.
Charts: Technical analysis charts to trade stocks, ETFs and indexes.