It’s simple to get started trading puts. First, you’ll need an account with an online trading platform like TD Ameritrade or Charles Schwab. In most cases, the account will be free to set up. In others, you’ll have to make a minimum deposit. In order to trade, you’ll need a minimum balance in your account (depending on the broker, it can range from $2,000 to $10,000).
Once you’ve received my alert with trading instructions, sign into your account.
To buy a new put, go to the search bar and look up the ticker of the stock you’re interested in.
Select “options” for that stock, and then find the put I recommended in the options chain. (You’ll be able to search via date, strike price, or other parameters.)
Once you’ve located the recommended put, select “buy.”
Select the number of contracts you want to buy. Keep in mind that one contract gives the owner control of 100 shares on the stock. I won’t recommend a number of contracts – that’s up to you depending on your individual investment objectives and risk tolerance.
If I’ve recommended limits (sometimes called a “buy-up-to” price), select your limits.
Select the Time in Force (should be Good till Cancelled, meaning your order will remain open until you cancel it).
Preview and confirm your order.