Exploring the Pros and Cons of Selling Naked Puts In the world of options trading, one strategy that often piques the interest of investors is selling naked puts. This strategy involves selling, or “writing,” put options without owning the underlying asset. While it can offer certain advantages, it also comes with its fair share of risks. Let’s delve into the benefits and drawbacks of selling naked puts using specific examples....
Trading QQQ with Covered Calls: A Success Story Hello, fellow traders! I’m excited to share a remarkable journey of trading QQQ (Invesco QQQ Trust) using the Covered Call strategy, which resulted in substantial growth in my investment portfolio. This story is a testament to the potential of options trading to enhance returns and manage risk effectively. The Covered Call Strategy: A Primer The Covered Call strategy is a popular options trading technique that combines stock ownership with the sale of call options....
First of all, please familiarize yourself with options in this blog post. I’ll summarize it here. A call option gives the buyer the right to purchase 100 shares of a stock. Let’s say you own 1 AAPL call option at strike price $200, that means you can buy the 100 shares of AAPL at $200. If the AAPL price at that time is $250, it means you can pocket $50 per share....
#TheStrat learning guide Since I discovered #finwit, I’ve been consistently spending quite a bit of time on twitter trying to hone my trading skill. I recently came across something called the #theStrat. I’ve backtested the strategy with many old charts and I was suprised by how well it has worked. As I am trying to get better at #theStrat, I realized there’s so much unstructured information on the internet and it could become overwhelming for someone trying to learn it....