Put spread option example 7 step


A bull put spread is a variation of the popular put writing strategy, in which an options investor writes a put on a stock to collect premium income and eexample buy the stock at a bargain price. A major risk of put writing is that the investor is obligated to buy the stock at the put strike oltion, even if the stock falls well below the strike price, resulting in the investor facing an instant and sizable loss.

By John Summa, CTA, PhD, Founder of OptionsNerd.comToo often, new traders jump into the options game with little or no understanding of how options spreads can provide a better strategy design. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and stpe power of options as a trading vehicle. Signing up for ourFREE daily e-letter also entitles you to receive this report.We will NOT share your email address with anyone.

Put spread option example 7 step gives me a chance to bust a few myths and educate the person on why they should add options trading to their investment arsenal.Simply put, options give you greatly spraed leverage and severalThis series is for the beginning options trader. Learn important terminology plus step-by-step instructions on how to sell (to open) put options for monthly income.In this video, Lilia explains important terms while going over her Feb.

2013 XOM trade. This is a pht lesson. Lilia uses Think or Swim for all her options trades.This is the first of many FREE lessons on options trading.




Put spread option example 7 step

Put spread option example 7 step