Option Trading: Cash Secured Puts

Cash Secured Puts are a great way to generate passive income on cash, or buy stocks at a cheaper price compared to current market prices. However all trades come with risk, so only trade cash secured puts on stock you are bullish on or think will go up. Or a stock you really like for the long term and wont mine if it decreases in value in the short term.

#OptionTrading #RobinhoodOptions #OptionEducation

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FYI: Those are all referral links and we both get free stocks or or money for signups.

Disclaimer: This is educational information.
All Trades have risk that should be considered before entering any trade. Options carry significantly more risk than stocks.

[jjperdiue]

Just make sure ur comfortable holding the underlying so u dont cry wen ur assigned.

[Thedividendprojectt]

I should do a video on this!

I just did this with VTI, I sold a call with a 91% chance of profit. It’s nice making extra cash on the side.

[swatantraupadhyay]

What happens when you hit the expression date ? What happens to those share and the benefits you made ?

[CashousePoker]

What if I increase the limit price Ex: it’s set at 0.00 - 0.01 and I elect 5.95 drastically reducing risk and chance for profit. What does it actually mean when I change the limit price that high?

[JuJu]

It looks like you were selling a lot of puts to be up 10% on the week. Is this right?
If so be careful because if you got assigned by two of them you wouldn’t have enough funds to buy the collateral

[TheAlpha-]

How much money would you make off this did you double cause the profit was also $77 like do you keep the $76+$77=$153 in a week?

[citizenm]

Have you ever used margin buying power to sell cash secured puts?