A:The incorporation of options into all types of investment strategies has quickly grown in popularity among individual investors. For beginner traders, one of the main questions that arises is why traders would wish to sell options rather than to buy them. Put writing is an essential part of options strategies. Selling a put is a strategy where an investor writes a put contract, and by selling the contract to the put buyer, the investor has sold the right to sell shares at a specific price.
Thus, the selling put options book series buyer now has the right metatrader moving average pdf sell shares to the put seller.Selling a put is advantageous to an investor, because he or she will receive the premium in exchange for committing to buy shares at the strike price if the contract is exercised. The purpose of Option Genius is to educate and show the individual investor how to manage their own money and increase their chances at generating market beating returns.Although profits are not guaranteed, we choose to execute trades that have a higher than average probability of success.
This success rate is determined by using statistical models and standard option pricing guidelines. A Bit About Option SellingBy selling options, we are in essence selling time. They are exactly opposite of Put options, which give you the right to sell in the future. In this section, we will look at Call options. The predetermined price is called the strike or exercise price, whilLearn how to invest by selling stock options. Alan Ellman guides us through his system of options trading soyou too can becomeCEO Of Your Own Money.
Read Full Disclosure. I want to thank you also for the incredibly good lists and articles that you and your team are putting together. I have learned so much from reading your articles and studying the weekly.
Selling put options book series