Name Your Price With Put Selling

Parent Strategy

Sell puts on stocks you want to own at a lower strike price than the current price.

  • can be a good strategy if you expect more downside in the short term
  • allows you to name a low price you're wiling to purchase at
  • in the worst case you earn what you sold the option for

Name Your Price Put Selling Process

  1. Select a stock you want to buy
  2. Think about how much you are willing to pay for it (below the current price)
  3. Sell a put option with a strike at that price
  4. If the stock drops below that price, you'll be obligated to purchase at that price
  5. If the stock doesn't drop below that price, you don't purchase the stock, but still collect what you sold the option for


  • If the stock doesn't go down and continues to go up, you miss out on any gains you would have received if you purchased the stock outwright