Selling cash secured puts is a moderately risky way options traders can generate options premium and dividend income. The risk is that the stocks will drop in price and be assigned with a loss.
Thanks again Donald. Enjoy your honesty with this bear market! I too have several stocks that were put to me and watched them fall farther and farther! With patience will try and get back to square one. Keep on writing!
Hi Donald.......Thanks for the great details. Your hard work and insights are very much appreciated.
You obviously have a trading plan when it comes to selling your CSP's but I'm curious why you did not attempt to roll one or two....or more of those positions rather than take assignment? I get the idea of selling CC's but depending on where the stock price is in relation to your strike price, and if you feel there is going to be more downside in the market, you could roll that option out...and possibly down, for additional credit, reducing your cost basis and keeping the trade "alive."
Thanks again Donald. Enjoy your honesty with this bear market! I too have several stocks that were put to me and watched them fall farther and farther! With patience will try and get back to square one. Keep on writing!
@Brewmeister.l Thanks for your comment and support.
Hi Donald.......Thanks for the great details. Your hard work and insights are very much appreciated.
You obviously have a trading plan when it comes to selling your CSP's but I'm curious why you did not attempt to roll one or two....or more of those positions rather than take assignment? I get the idea of selling CC's but depending on where the stock price is in relation to your strike price, and if you feel there is going to be more downside in the market, you could roll that option out...and possibly down, for additional credit, reducing your cost basis and keeping the trade "alive."
Thanks again for your time.
@RoRo Great point. Rolling puts would be a smart move in a bear market like this. Thanks for your comments and for reading.