Sell Put
#safebull , Strategy
Market View -Mildly Bullish The Trade -Sell a Put Option Premium – Receive, Generally if carried forward, it show it as extra margin next day. Margin – Required When To Do Pros Cons Time and Volatility
Market View -Mildly Bullish
The Trade -Sell a Put Option
Premium – Receive, Generally if carried forward, it show it as extra margin next day.
Margin – Required
When To Do
- If the stock/index will not go down – that is i) stays still, ii) small or big up move or iii) a very small down move
- Avoid selling when IV is low
Pros
- Make money even if you are slightly wrong, that is the stock moves down a bit
Cons
- Very high loss if market crashes
Time and Volatility
- Gains time value every day
- loses if IV goes up
