This strategy would have two advantages: immediate income from the option premium and the potential to buy shares at their target price. For example, selling a $200 put might have generated $15 ...

For example, a put option with a strike price ... and that they think will go up in value in the short term, they can write or sell a put option on that stock. The buyer of the put option thinks ...

For example, if you have a concentrated long ... based on the assumption that their price will decline. Can I Short Sell Put ...

They buy call or put contracts and hope to sell them for a profit or exercise them later. But there are also options income strategies. For example, some investors sell puts for income.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with ...

If so, you'll have one of two choices: You can sell to close your option ... For example, let's say XYZ is trading at $30 per share on expiration Friday. Your 37.50-strike put would be worth ...

Here’s an example. Marco wants to own XYZ stock ... This is unlikely but possible, so she must account for that risk when selling the put option. Calls and puts can be combined in various ...

Options offer strategic investment choices for buying (call) or selling (put) stock at specified prices. Selling options can provide steady income from premiums if the stock doesn't hit the strike ...

For example, say Tesla’s stock trades at ... It’s also possible to be a seller of call and put options. You might sell, or write, call and put options for a variety of reasons, such as earning ...

by selling a put option. So I’m going out to August 19th ... In the worst case scenario of this example, the trader loses a max of $77 dollars rather than $2,250.