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Selling Cash Secured Put Example on Fidelity Investments

Jake Broe
598K subscribers
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45K views 4 years ago #Fidelity #CashSecuredPuts #TradingOptions
Check out my entire playlist on Trading Options here:    • How to Trade Options   💯 LET’S CONNECT 💯 📷 Instagram @JakeBroe 👉   / jakebroe   🐦 Twitter @Broe_Jake 👉   / broe_jake   You can watch my entire playlist on investing with Fidelity here:    • Fidelity Investing   👇 👇 Watch My Other Videos Here 👇 👇 ★ How to Sell Cash Secured Puts - Options Trading Strategy    • How to Sell Cash Secured Puts - Optio...   ★ Do Not Exercise Options Early - Here is Why    • Do Not Exercise Options Early - Here ...   ★ The Greeks Explained - How to Trade Options    • The Greeks Explained - How to Trade O...   🍺BEER MONEY DONATIONS🍺 PAYPAL: https://paypal.me/jakebroe?locale.x=e... 📷 📷 My YouTube Equipment 📷 📷 ► My Camera 👉 https://amzn.to/2UZpFwA ► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq ► My Wireless Microphone 👉 https://amzn.to/2QBV9W0 ► My Shotgun Microphone 👉 https://amzn.to/36bdLTv ► My Lighting 👉 https://amzn.to/2F5Ey7V ► My …...more
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Selling Cash Secured Put Example on Fidelity Investments
2KLikes
45,519Views
2021Apr 15
Check out my entire playlist on Trading Options here:    • How to Trade Options   💯 LET’S CONNECT 💯 📷 Instagram @JakeBroe 👉   / jakebroe   🐦 Twitter @Broe_Jake 👉   / broe_jake   You can watch my entire playlist on investing with Fidelity here:    • Fidelity Investing   👇 👇 Watch My Other Videos Here 👇 👇 ★ How to Sell Cash Secured Puts - Options Trading Strategy    • How to Sell Cash Secured Puts - Optio...   ★ Do Not Exercise Options Early - Here is Why    • Do Not Exercise Options Early - Here ...   ★ The Greeks Explained - How to Trade Options    • The Greeks Explained - How to Trade O...   🍺BEER MONEY DONATIONS🍺 PAYPAL: https://paypal.me/jakebroe?locale.x=e... 📷 📷 My YouTube Equipment 📷 📷 ► My Camera 👉 https://amzn.to/2UZpFwA ► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq ► My Wireless Microphone 👉 https://amzn.to/2QBV9W0 ► My Shotgun Microphone 👉 https://amzn.to/36bdLTv ► My Lighting 👉 https://amzn.to/2F5Ey7V ► My Light Diffusers 👉 https://amzn.to/2tjF8fG ================ 📚 📚 Books That Changed My Life 📚 📚 📗 How to Win Friends & Influence People 👉 https://amzn.to/2F3ahGC 📕 Dumbing Us Down 👉 https://amzn.to/2spodrZ 📘 Quiet - The Power of Introverts 👉 https://amzn.to/36b2ti3 📙 The Red Queen 👉 https://amzn.to/2QzNW8W 📔 Rich Dad Poor Dad 👉 https://amzn.to/3bliFyP 📒 Why Nations Fail 👉 https://amzn.to/3fWZ3Em ================ Introduction to Put Writing A put is a strategy traders or investors may use to generate income or buy stocks at a reduced price. When writing a put, the writer agrees to buy the underlying stock at the strike price if the contract is exercised. Writing, in this case, means selling a put contract in order to open a position. And in exchange for opening a position by selling a put, the writer receives a premium or fee, however, he is liable to the put buyer to purchase shares at the strike price if the underlying stock falls below that price, up until the options contract expires. Profit on put writing is limited to the premium received, yet losses can be rather substantial, should the price of the underlying stock fall below the strike price. Due to the lopsided risk/reward dynamic, it may not always be immediately clear why one would take such a trade, yet there are viable reasons for doing so, under the right conditions. Put Writing for Income Put writing generates income because the writer of any option contract receives the premium while the buyer obtains the option rights. If timed correctly, a put-writing strategy can generate profits for the seller, as long as he is not forced to buy shares of the underlying stock. Thus, one of the major risks the put-seller faces is the possibility of the stock price falling below the strike price, forcing the put-seller to buy shares at that strike price. If writing options for income, the writer's analysis should point to the underlying stock price holding steady or rising until expiry. Best Practices for Selling Put Options Investors should only sell put options if they're comfortable owning the underlying security at the predetermined price because you're assuming an obligation to buy if the counterparty chooses to exercise the option. In addition, you should only enter trades where the net price paid for the underlying security is attractive. This is the most important consideration in selling puts options profitably in any market environment. Other benefits of put selling can be exploited once this important pricing rule is satisfied. The ability to generate portfolio income sits at the top of this list because the seller keeps the entire premium if the sold put expires without exercise by the counterparty. Another key benefit is the opportunity to own the underlying security at a price below the current market price. ================ #Fidelity #CashSecuredPuts #TradingOptions ================ DISCLAIMER: This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video. ADVERTISER DISCLOSURE: Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!

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Jake Broe

598K subscribers