Alan Ellman's Selling Cash-Secured Puts
Alan Ellman's Selling Cash-Secured Puts provides tools to master a conservative stock and options strategy with the goal of generating monthly cash flow and focusing on capital preservation. This book presents basic option principles that will walk you through the process of stock and option selection. Additionally, calculating profits and position management will also be critical topics addressed. In other words, every aspect of this strategy will be discussed including the necessary steps to take before, during, and after a trade is executed. Alan Ellman will not tell you what to do but rather how to do it and why.
Examples of real-life trade executions will be shown in conjunction with illustrative charts and graphs, and the rationale for each step behind the trade will be explained using easy-to-understand terminology.
Alan Ellman also covered call writing, along with materials needed to master the great strategy of selling cash-secured puts.
He offers knowledge on the usage of stocks and stock options to develop a low-risk, wealth-building strategy for retail investors.
The purpose of this book is to give the reader the tools to master a conservative stock and option strategy with the goals of generating monthly cash flow and focusing on capital preservation.
Alan Ellman aims to give you the education to apply basic investment principles in all situations, for your financial decision to become non-emotional and based on sound fundamental, technical and common sense principles.
Table of Contents
Acknowledgments
About This Book
Introduction and Preview Example for Put Selling
Option Basics
Selecting the Best Stocks for Put Selling
Selecting the Best Strike Price and Expiration Date for Put Selling
Calculating Put Option Returns
Executing Put-Selling Trades
Exit Strategies
Exchange-Traded Funds
Stock Splits and Other Corporate Actions
Tax Treatment
Brokerage Accounts and Commissions
Comparing Covered Call Writing and Selling Cash-Secured Puts
The Put-Call-Put (PCP) Strategy
Appendix I - Strategy Summary
Appendix II - Stock Example for Put-Selling: SWKS
Appendix III - ETF Example for Put-Selling: QQQ
Glossary
About the Author