A: Selling puts is a bullish strategy – and it’s a lot different from buying put options. See, when you buy a put, you have the right to sell the underlying security at a specific price. But when you sell a put, you have the obligation to buy the security at a specific price from the put buyer.
We will only sell puts on stocks that we’re willing to own at the strike price. But if the option buyer does not exercise their right to sell before expiration, then you get to keep the entire premium. For more info on selling put options, check out this report.
Category:
Rocket Wealth Initiative