O'Reilly logo

Options by Michael C Thomsett

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required