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3.18.2017 - Selling Puts, the how and why Bookmark

Today's free investment newsletter is posted and today we do an in-depth tutorial about selling puts. We discuss what a put is, and why someone would want to sell a naked put, versus buying a put. We discuss the risks, the rewards and a couple ways to play it.  Like any investment that offers an oversized return, there's an oversized risk, but that risk can be managed properly. 

So if you've ever seen the commercial where the broker and his client are talking and the broker says "well, we might consider selling a put", and the client says "That sounds interesting".... you'll find out what's interesting about it in this weeks free investing newsletter. 

3.18.2017 - Financial Intelligence Report Bookmark

The Commercial/Selling a Put
 
I got an email the other day from a gent who was watching TV, and a commercial came on. In that “financial” based commercial, there was a conversation between a client and what appears to be either his broker, or advisor. In the flow of conversation, the advisor says to the client, “well we might consider selling a put...”  to which the client says something like “that’s an interesting idea.”

12.23.2015 - Insiders Club Bookmark

12.23.2015

Morning all, welcome to Wednesday.

Well it looks like I'm not alone in thinking that 2016 could bring us some big time troubles in market land. As you all know I bought a put option against the DOW a few months back, thinking that the market was finally ready to roll over for a bit. Well that didn't happen.

Yet we just learned that the "put/call" ratio against the S&P 100, the "OEX" is at levels never seen before.

12.17.2014 Financial Intelligence Report Bookmark

Naked positions

 

I'm going to wrap up our two week tutorial session about options. We've discussed what they are, how they work, ways to use them, etc. Today we're going to end with one of the riskier aspects of options trading, called "selling naked". While it is indeed more risky, meaning you have to really manage that risk, along with the risk comes big rewards. So, let's get to it...

 

As you know if you think a stock is going to rise you can buy a call option and if you are right your call option will appreciate in value. On the other hand, if you think a stock is going to fall you can buy a put on it and sure enough if you are correct and the stock falls your put increases in value and you have made a profit. That being said ... there are other ways to play this option game and in this section we are going to look at one of them. As a technical term it is called "selling a naked put" and although the name sounds a bit kinky...believe me that is the true name. The first thing to keep in mind as we go forward is that this technique is very profitable if done correctly and any time the market is going to reward you with higher profit's...instantly you should think higher risk.


12.10.2014 Financial Intelligence Report Bookmark

What's a Put???

Because of an increased interest in “stock options” lately, we’ve been doing a bit of an introduction to options recently.  On Sunday we explored the idea of what they are and how they function. We discussed the fact that options are no more risky than stocks, and how you shouldn’t be afraid of them at all. They’re simply another tool to use in trading. Then we talked about the basic “call” option.

Today we’re going to look at the other side of the coin, which is called a “put” option.

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