Stocks & Commodities V. 25:8 (65): Explore Your Options by Tom Gentile
Product Description
Explore Your Options by Tom Gentile
SELLING TO BUY
I’ve heard the term “selling to buy” when discussing put options. I am not sure what it means and when to apply it in my trading.
If you are selling to buy, you are selling or writing options and are willing to buy the underlying security. The most common way of doing this is to sell puts on stocks you want to own. For example, if I want to buy a stock for $50 a share and the stock is currently trading at $50.50, I can sell put options with a strike price of 50. Depending on how much time is left until expiration, I might get a few hundred dollars per contract for writing the put.
SELLING TO BUY
I’ve heard the term “selling to buy” when discussing put options. I am not sure what it means and when to apply it in my trading.
If you are selling to buy, you are selling or writing options and are willing to buy the underlying security. The most common way of doing this is to sell puts on stocks you want to own. For example, if I want to buy a stock for $50 a share and the stock is currently trading at $50.50, I can sell put options with a strike price of 50. Depending on how much time is left until expiration, I might get a few hundred dollars per contract for writing the put.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |