Chapter 7 Selling Puts: The Overlooked Strategy
The place where optimism most flourishes is the lunatic asylum.
̶̶ Havelock Ellis, The Dance of Life, 1923
Selling puts is an optimistic strategy. You will profit if and when the stock’s market value rises; even so, it is easy to forget this because so much emphasis is placed on calls. The incredible feature of options trading is that strategies can be devised to suit any type of market and any level of risk. Evaluate puts for their potential, and compare short put risks to the risk of long calls. Their profile is identical; the risks are far different.
Comparing short puts to long calls is only one of the comparisons worth making. You may be aware of the special risks involved in selling calls ...
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