Selling Put Options = BIG WIN Rate (Only Takes 5 Minutes)

If you want to have high odds of winning on your option trades, then you need to consider selling put options.

Selling puts, done the right way, can give you the potential to have upwards of 95% odds of winning on your trades. That's amazing!

In this video, I discuss why the probabilities of winning are so high when selling puts, and how to pick the proper strike price to get you there.

A probability calculator is your key to getting these numbers, and it only takes a few minutes (really a few seconds) to type in the details. See the link below.

Send us any questions you have, or leave a comment if you wish.

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DISCLAIMER: This video is for educational purposes only and should not be construed as financial advice or a recommendation to buy or sell any security or investment. Consult with a professional financial advisor before making any investment decisions.

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[CarsandCats]

I sold monthly puts on TSLA in 2021 but my strikes were too close and I got assigned. I sold barely OTM covered calls until I could exit, but then it rocketed. I think I would have been better off with buy and hold in that case. Covered calls have burnt me so many times by capping gains.

[mechannel]

2:40 pick quality stocks likely to go up over time. Selling puts have overall mkt direction on your side 5:40 % of puts expiring worthless 7:50 figure out where stocks won't go, rather than where they will go 9:45 strike price at minimum 20% below current price 11:20 probability calculator, Apple, 68 days out 22:00 tsla

[stevebuchanan]

I like the probability, and having quality stock if assigned, plus the discount of owning, etc. The only problem is that it takes a lot of cash in your account for a long period of time until the option expires. So you pocket $47 after over 2 months. Most traders don’t have an account that large.

[freddrake]

Thank you. I appreciate your thoroughness and pace. I'll be back for future videos.

[RCRadioShow]

I have never thought of selling puts at a strike that far below the stock price so I found this video thought provoking. I have been dabbling with the wheel strategy for about a year and have been burned a few times on selling covered calls on stocks that took off. NFLX and NVDA for example. Fortunately I just made 81% on some NVDA calls in 9 days so that helped ease the pain a little. I am curious why you would choose this strategy over buying LEAPS? Maybe it is a lower risk strategy? Thanks again for the videos.

[abhardwaj]

Mr. Lee Thanks for great content. You are correct - we randomly buy a put contract on what suits us - this is great video on probability.

Questions I have are (assuming the companies we like):

1. How do you find a way to optimize the premium (we will collect) based on the Duration of the call i.e - will one be more profitable to sell a put for 15 days vs 30 days or any other duration.

2. What had made you more money for you to sell option short term or long term.

[TheJessehart]

The return on capital is horrible on that trade. Less then 1% return?

[ruthwaithira]

You are a gem. New Sub, I have learnt alot in the last couple of days especially from your videos. Thank you so so much. I will be back with some testimonials. So much knowledge 🙌🏾

[davesaunders]

Seems like a win win. If the trade strikes at the target price you've just bought Apple at a great price. Leaves you other options or just sell when the price goes back up.

[jimmyb]

In your Apple example, you end up with a 2% annualized ROI. I could buy short term fixed income at 5% with 100% win rate. I doubt anyone cares about a 95% win rate to earn 2%.

[grandpa]

Thanks Lee, I'm learning a lot. Was wondering if you had any of your books on selling puts left?

[kevinlue]

I like to avoid crossing the underlying stock's earnings date when you sell a put. If you like to avoid some risk, don't trade earnings! Just found your channel recently. Not sure if you have ever covered that topic.

[TishDuncan-ut]

thank you so much you answered so many of my questions in this video great work

[Xplosivedog]

I like the concept, but you have to consider if you would get any buyers that far out of the money. Your Tesla example….. a $50 strike price? Who would buy that? Volumes for the strike price matters too.

[craigShell]

Is your probability calculator generic not stock specific? As you did not input TLSA into the equation?

[daho]

Hi Lee love your videos and new to this game. Question, if Time Decay matters, should we just go all the way out into the future 200/300 days rather than 30, 40 60 days etc? Selling put.

[varunsayalauthor]

Re TSLA trade: 27 dollars keeping 5 thousand as collateral for 222 days, that's 0.8% annualized return. T-bills are giving 6 times that.

[kevygranero]

Thanks Lee, your videos and book are incredible.
I have a question about what's the tactic you use with the collected premiums? Do you purchase a few units of the same stock or an ETF like SPY?

[saifulhidayat]

I sell puts to buy stocks, i want it to get exercised. If u want to collect premiums, sell covered call with 15 delta..at least u get to realize the stock capital appreciation too.

Utilizing a large chunk of cash and locking it for months to get a fraction return is not very effective

[CarsandCats]

Do you ever let open interest influence your decision on strike price? When I see very high open interest at a strike at or above where I was considering selling a put, I pass on the trade. It makes me think maybe someone has inside information and placed their bet appropriately.