I have previously written about an article as to why value investors should also be options traders, specifically the “art of selling put options” to generate passive income as you wait for the RIGHT price to purchase your ideal stock candidate.
That is what selling put options is all about and as “complicated” as it might sound, it is actually a simple process that can usually be executed with a few clicks of the button using a brokerage platform that allows for options trading.
In this article, I will be touching on 2 key strategies when it comes to selling put options. The first is to sell puts to buy stocks at a discount and the second is to sells puts to trade.
What do you mean when you Sell Puts?
In the options world, there are 2 main types of options: Call Options and Put Options. Concurrently, you can either be a Buyer or Seller or both of these 2-types of options....