Publications

Writing Naked Puts

Type
Link
Cost
Paid
Published
2014
Full Name
Writing Naked Puts: A Hands-On Guide to Making Money with Options

Writing naked puts is a strategy for investors who want to buy stock at below current market prices. If the stock is not available at that low price, then the investor earns a cash profit as a consolation. Writing naked puts is for the short-term investor who has a modestly bullish bias on the underlying stock or index. This book is for the trader who already has a basic understanding of how options work.

(1) Those who want to buy stock at below (current) market prices

(2) The shorter-term bullish trader who wants to earn a profit even when the stock price does not rally

  • The first part contains background information that provides a better understanding of why writing put options is an attractive strategy for anyone with a bullish market bias.

  • The second part covers trading ideas: how to think about a trade, how to prepare for a trade, how to enter and exit the trade, how to repair a trade – if and when it becomes necessary, and how to prepare for expiration.