How To Sell Puts For Max Profits In Shorter Time

How To Sell Puts For Max Profits In Shorter Time

1) High Implied Volatility
2) Find underlying that is overextended
3) Find options that expire 5-6 weeks from entry date
4) Sell put option strike that is OTM
5) Don't milk trade for full premium, take profits early and/or close into last week

[JK-vbps]

Joshua, appreciate the content. I saw some negative comments but be encouraged instead.

Once one masters selling options, there's no turning back. It's beautiful and I'm enjoying every sense of it.

[billf]

I have been trading naked puts and calls for decades and have often done extremely well, particularly the past year. However lately because of the great volatility, buying to open has seemed impossible since every choice of expirations and priceing seems too expensive a start so to speak. Gee, I gotta pay $6 for a $30 call when the stock price is $26 with a 3 month expiration! My breakeven is the stoc getting up to $36 from $26! So, I must finally change my modus operandi and begin to Sell Puts and Calls to Open and Buy to close! Josh's video is the best of the half dozen I watched to help acquire this new skillset! For example, I learned his technique of picking the right strike to sell so as to make enough premium, yet not be too close and make it far too risky. So...Thanks Josh!

[bobharwood]

If selling puts do you need to actually own the stock since you have to have the money available in case you are called? Can you sell puts on stock you do not own?

[Atropos]

This is a pretty old video, so you probably won't see this, Joshua, but I have NEVER had high IV opportunity explained to me in this way. I won't go into all the details, but for the longest time, I thought selling something like a put credit spread in a high IV environment made no sense. However, now I completely get it. Thank you, sir, you are a legend and you just gained a new subscriber.

[JoseGarcia-krxx]

andy crowder from wyatt research is the king of selling puts!straight and to the point!

[Mike-lhwn]

I've been doing okay selling covered calls. Just starting to sell puts. I'm thinking it might be easier to manage puts vs CCs.
- Net position/profit/loss is much more direct and straightforward.
- I can instantly get out to either capture a profit or cut a loss (rather than having to unwind the stock/call combo).
- Multiple ways to mitigate loss (either roll it out, buy a vertical put, take assignment and sell calls, or just buy the put back for a defined loss).
- Multiple ways to capture profit. Either ride the clock, or close the put when the stock rallies. Can't do this with a covered call...when the stock goes up, the call goes up. So I'm stuck until expiration. Much less flexibility to get out with a profit other than riding the clock and hoping the stock stays up enough til the end.
I like doing trades that close out by the end of the week. But I guess I could do as you suggest...selling puts with a couple/few weeks til expiration, then closing them out after they lock in sufficient profit. This would give me additional time/premium buffer, while allowing me to still aim at getting in and out on a weekly basis.
Thanks for the video. Mike

[Carlos.Ruiz.Guzman]

I hope you can make a video of a Short Put going bad. How to repair it, or your recommended secondary exits.

[tazanddo]

I think I'm going to have to watch this video over and over a few times to understand everything you're saying Joshua. Thanks for the explaination!

[zeeshanhaider]

Great video! Visuals really helped. I hope that you create more videos where you back the visuals up with a verbal explanation

[davecirelli]

Its a great winning strategy used for stocks you want to own and get it at a discount but most traders want to profit on the sale of the PUT and most traders like to trade the front month. Going further out (say, 2 or 3 months out or more) and rolling after 30-50% of max profit and possibly adjusting the strike price works well in a bullish or flat market and can even withstand some level of declines. Balance with slowing entering into positions over a period of time. I like to keep a distance with the top names, MSFT, GS, HD, AAPL, BRK/B, V etc... Having a margin or portfolio margin account is key as well. Front month option trading has often led to losses with the gamma risk, not to mention the stress. Good luck.

[fjderosa]

Nice video, thanks for the information! I'll be sure to reach out to you on other videos you put out, as I am still learning and applying what I learn on the TOS paper money platform. Thanks again!

[abelflores]

This videos helps beginners thank you . I had time to screenshot and take notes . Looking forward to your other videos.

[goldfinger]

Good explanation. A question though- where do you put the stop loss when the trade starts going in opposite direction than what intended it to? at what point you decide to exit with losses rather than have the losses pile up- selling naked options (calls/ puts) has a non zero small probability of failure and the amount of loss is huge compared to the profits made per trade selling naked options- a potential unchecked loss could take very long and many a successful trades to just recover.

[ChaceBonanno]

This video has instructions that can take you years to come with yourself

[glassarthouse]

Really clear and concise and helpful. thanks.

[rlc]

When selling puts does the strike price need to be greater than the current stock price or less?? Thanks

[waltermercado]

I personally use my entire account balance and sell weekly puts that have above an 90% otm probability. Been working very nicely for me for the past year. Very consistent income.

[manishanmugam]

How do I consider underlying has high IV? Any particular benchmark?

[YuuzahnDragon]

Great detailed video. I'm sure trading seems fun if you know what you're dealing.
As a beginner, it's been a while since I traded and I think I'm a bit rusty. Can you try to explain how to close a naked short put trade?
I know that you have to buy to get out of a selling position, but by how much? Above or below the strike?

[Journeyman-Fixit]

Joshua, Hi - great informative video. Since I am a trader and know little of this process may I ask: Is there a service that I may subscribe to that will from a probability standpoint recommend an ongoing feed of Puts I can sell so that I will realize more assured monthly income and less situations where I am say hitting a default where I end up shelling out funds to buy large blocks of stocks? Thanks.