WHY I SELL ITM PUTS (IN THE MONEY PUTS)

In today's video I want to talk about one of the safest ways I grew my account! I used this approach when I first started investing and still use it to this day. This is a great way to generate some pretty great returns weekly with options trading, but there are important things to consider, so make sure you watch the entire video. Trading options can be risky, so make sure you understand the basics of options trading before your first options trade.

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[JADiaz]

After watching this, I have absolutely no idea what’s going on and will never do options. Thanks.

[mdg]

I think the better option would be to sell the high IV put option and buy out after the IV crush. Also, if the stock rises the premium to buy out will also fall.
I personally just sell in the money puts to stocks I am bullish on and use the premium to buy in the money leaps on the same stock. Cost less then owning the stock and I get to ride delta. If the stock rises above my puts, they expire worthless and I ride for free. If the stock is in the money at time of expiration, I kick the can by buying out my position and selling another put for the same strike on a later date. I make some more money from the theta decay. Should I get assigned, I sell covered calls. The goal for me is to increase my position at no cost then move on to a different stock after my puts expire worthless. Lastly, if the stock falls too low that theta decay is not making much, I can roll out and down and shorten how far out by using the leaps to sell poor man covered calls to reduce my cost basis.

[edmandell]

IV being high doesn't necessarily mean the stock price will rise...couldn't it also fall? Then doesn't your outcome change?

[KevinCurranIRE]

If I sell in the money puts do they get assigned right away? Is it possible that I sell long dated in the money puts and they never get assigned, and my capital is just locked up with it until the expiry?

[kael]

Short term capital gains on the premium should be factored when determining break even.

[briandeluca]

So only do this if you plan on actually keeping the 100 shares and not just exercising the option and taking the profit without getting the shares?

[jeffdange]

Great video. I'm new to all this and I have a lot to learn before I actually do anything. But great education and tools to use! Thanks

[brendanunez]

I have the ability to buy only 1 option how do you get to choose more than 1? Should I use another app not robinhood.

[thejasonbassGA]

Won't you have to buy the stock at the agreed upon strike price, which is more than the current underlying price?

[LincolnOlson]

Not a bad strategy at all under the right circumstances - pretty underutilized. Don't forget you're capping your max gain though. Good stuff.

[gexiong]

How do i get your buy alerts Or what you think it good to buy?

[PreacherwithoutaPulpit]

Okay someone help me here as I'm really trying to learn options trading.
How is this an ITM transaction when the stock is at $23.11 and the strike of the option is $40?
When you sell a Put how does that entitle you to the shares? Aren't you selling a Put in the hope it expires worthless so you collect the premium without having to repay?
I'm really lost on this one because it seems to go against everything I've learned so far and even goes so far as to label something that's clearly OTM as ITM...

[homenhungry]

Excellent. EXCELLENT. I've liked, subscribed, commented, and thank you kindly for the references and demonstration of Barchart and OptionStrat. --Jack, 62, Pasadena, CA

[ethanmyers]

Please make a video on how you pick your stock and base your options off of that. Please please please. You’re the only financial advisor I like on YouTube

[edmandell]

Great Video. I noticed you picked August 20th as the date. Is that key to this strategy? Or is that insurance is case your position goes south quickly (time to recover)?

[lahatimuga]

So where exactly do you go to find the implied volatility?, which website?

[shivakumargajjala]

What if cciv goes to $15 on expiration ? We lose money right

[laszlosoltesz]

When you get assigned the shares at expiration, do you get to keep the premium? In other words, are you basicly using the premium to cover half the cost of the purchase?

[SkippaRick]

When you sell in the money puts do you still get the premium up front

[OldLion]

Every bit as important as price movement unless you are holding all options in the position to expiration. I couldnt make any money in options until I started predicting IV as well.