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Novice Investors (4) | Options: Selling Cash Secured Puts

Posted By: ELK1nG
Novice Investors (4) | Options: Selling Cash Secured Puts

Novice Investors (4) | Options: Selling Cash Secured Puts
Published 8/2022
MP4 | Video: h264, 1280x720 | Audio: AAC, 44.1 KHz
Language: English | Size: 630.83 MB | Duration: 0h 58m

Learn to trade options safely | Buy stock at a discount | Options trading for beginners

What you'll learn
Use put options to buy stock at a discount.
Read an options chain.
Understand the 100 multiplier.
Enter an order to sell a put.
Understand the "moneyness" of your contract.
Know what to expect when your options contract expires.
Select a strike price and expiration date that meet your goals for the trade.
Review Introduction to Options Trading: calls vs puts, time decay, safe trading with collateral
Requirements
Students should have a basic understanding of the stock market. (If you are not familiar with basic stock market terminology, I offer an introductory course to get you started.)
Know how to buy and sell shares of stock using a limit order. (I also offer a low-cost course on this topic.)
We will review basic options concepts at the beginning of the course, but if you are completely new to options, you might want to first take my Novice Investors: Introduction to Options Trading course.
Students who are completely new to options and trading may also want to start with a paper trading account.
Description
Are you ready to take the next step and start using options to safely boost your portfolio and returns?  Learn to sell cash secured puts to bring extra cash into your account and reduce your costs for the stocks you want to buy.  I'll show you how to manage your portfolio with LESS risk than buying stock outright at current market prices.  (Watch the promo video to see how your first trade can pay for the course with change left over!)First, we'll review basic options concepts and terminology.  The review covers the content in my Novice Investors: Introduction to Options Trading course, but I have highlighted the most important parts relevant to selling puts.  If you have already taken the Introduction to Options Trading course, this will be familiar to you, but it's probably worth listening to again. Next, I'll show you how to read an options chain and select a strike price and expiration date that match your investing goals.  You'll get step by step instructions for selling your first put.  I'll show you what to expect from the time the contract is opened until it expires.  And I'll make sure you understand the importance of holding cash in your account as collateral in case you are assigned to buy the stock!  We'll look at scenarios where a put is "in the money" or "out of the money" at expiration.  I'll show you how to find your breakeven point, determine your goals for the trade and see if the outcome you get matches your original goals.  Note: This course is the second of a 3-part "Novice Options Traders" series.  A warning about risk:  All over the internet, you’ll find self-proclaimed gurus who promise you outsized returns. Some of them may even try to convince you to hand your funds over to them so they can invest for you. Taking the wrong advice or giving your funds to someone else to invest can blow your whole portfolio. Even a few trades that go against you can wipe out any gains you make.  You can count on me to level with you.  I will not make false promises and I will never suggest you give me your money to manage. I am a teacher, not a financial manager. Trading options is not necessarily any riskier than just buying stocks and funds. In fact, there are ways to use options to boost your returns and actually reduce your risk rather than amplify it.I do want to be clear and honest up front that I am not encouraging the kind of risks that might bring you outsized gains on your overall portfolio. Anyone who promises you that is probably encouraging you to take on more risk than I can justify. But you can use options to pay less for stock you want to own, and to make extra cash on stocks you are willing to sell.  An extra few percentage points on your earnings each year, can really add up over time.  And during a bear market, or even just an expected market correction, using options can reduce your losses and set you up for a bigger recovery.  Your first assignment will be to use this checklist to see if you are ready to trade options.Are you ready to trade options?Check and see if these statements are true for you.I have a brokerage account I manage myself.I know how to buy and sell shares of stock.I know how to choose stocks I want to own.I can use limit orders to set my buy and sell prices.I have the funds and the risk tolerance to invest at least $5000 in a single company.I want to actively manage my account.I have the time to check my options positions at least once a week and place orders once or twice a month.I am patient and want to build my portfolio safely, over time.I like to understand how things work. Don’t just give me a fish; I want to learn to fish.(If these statements are not true of you yet, I suggest you start with my Novice Investors: Introduction to The Stock Market course to build more background knowledge.  Learn how the stock market works and spend a little time buying/selling stocks and funds before you jump into options.)

Overview

Section 1: Introduction | Meet your Instructor

Lecture 1 What to Expect in this Course

Section 2: Introduction to Options Trading

Lecture 2 How Options Trades Work

Lecture 3 Two Types of Contracts, Four Ways to Trade

Lecture 4 The 100 Multiplier

Lecture 5 Sell Puts, Take Advantage of the Passage of Time

Lecture 6 Protect Yourself When Trading

Lecture 7 When an Option Contract Expires

Lecture 8 Was the Trade a Success?

Lecture 9 Risks and Regrets

Lecture 10 Complex Options Spreads

Lecture 11 Setting Up Your Account to Trade Options

Section 3: Overview: How to Sell a Put

Lecture 12 Introduction to Selling a Put

Lecture 13 Choosing a Stock

Lecture 14 Choosing a Strike Price and Expiration Date

Lecture 15 Entering an Order

Lecture 16 Waiting for Expiration

Lecture 17 What Happens on Expiration Day?

Lecture 18 Example: Is This a Profit?

Section 4: Selling Your First Put | Step by Step Instructions | Questions to Ask Yourself

Lecture 19 Chose a Stock | Questions to Ask Yourself

Lecture 20 Find the Options Chain

Lecture 21 Choose a Strike Price

Lecture 22 Choose an Expiration Date

Lecture 23 Prepare, Double-Check and Submit Your Order

Lecture 24 Check for Execution and Wait for Expiration

Lecture 25 Plan for Expiration

Lecture 26 Exceptions: FOMO and "Buy to Close"

Section 5: What Comes Next?

Lecture 27 What Should I Learn Next?

Lecture 28 Feedback

Lecture 29 Where to Learn More

Investors who are curious about options.,Experienced investors who want to use options to boost their returns.,Careful investors who want to manage their risk while boosting their returns.