The Naked Trader: How Anyone Can Still Make Money Trading Shares by Robbie Burns

The Naked Trader: How Anyone Can Still Make Money Trading Shares Robbie Burns ebook
Publisher: Harriman House
Format: pdf
ISBN: 1905641516,
Page: 378

With the recent volatility pushing up premiums, he might collect $2,000 on 5 contracts of at-the-money naked puts on SPY if he sold them two weeks before expiration. If the market as a whole has turned bearish, or you're a very conservative trader and want to stack the odds in your favour, you can still make a regular income with the right covered call strategies. By selling a call option, the trader is giving someone the right to purchase their stock at the strike price on or before expiration in exchange for a premium. Why not do it that way and save a little money on commissions? By selling stock options, one can realistically earn 60% or more on their money a year. If the price of the stock does move higher and you get the stock “called” away while doing the covered call strategy, you still win by locking up profits and then going back out and buying shares again and selling option contracts above the current underlying's price. You buy the stock at a discount by selling naked puts under it. So if you own 100 shares of company XYZ, you would sell 1 call option to someone giving them the "right" to purchase your stock from you. Product DescriptionIn this revealing new book, the follow-up to the bestselling first edition, top trader Robbie Burns cuts through the jargon to give you. In exchange for selling Naked option selling has significant risk and is not recommended for novice traders. Covered: the You can't do anything with those shares as long as that covered call is still an open trade. In this case, the best Once the share price has fallen significantly (but not as low as your ITM call option strike price) you 'buy to close' the sold options and immediately sell MORE in-the-money calls at a still lower strike price.