Started By
Message

re: How many of you are true Bogleheads?

Posted on 7/14/13 at 1:59 pm to
Posted by makersmark1
earth
Member since Oct 2011
15978 posts
Posted on 7/14/13 at 1:59 pm to
quote:

Can you explain this? Then explain how much you make from doing this to see if it is worth investigating


SELLING or writing put options means you are obligated to purchase that stock at that price(strike) at a date certain (expiration) in the future.

I sell cash secured put options at strikes that I would have been happy to buy at that price.

Say ABC is selling at 12 dollars and you would buy it at 10. You could sell the JAN 14 10 put for say .75 per contract. If you sold 10 contracts you would receive a premium of 750 dollars less commission(10 or 15 bucks) at most online brokerages.
This post was edited on 7/14/13 at 2:21 pm
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram