Can You Really Lose Money Selling Puts? (What I Learned)
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▬▬▬ Chapters ▬▬▬
0:00 Intro
1:34 Is selling put options safe?
5:41 What are the Risk of selling puts?
9:53 Can you Lose money selling Puts?
11:17 Why would you sell a put option?
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🔴 How to FIX a LOSING OPTION TRADE video: https://youtu.be/6dtbDnpfuGM
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In this video I’m going to answer the questions: is it safe to sell put options? What are the risks of selling a put option? And is selling put options a good idea?
Selling put options is my absolute favorite way to generate income in the stock market. However if used improperly, then as warren Buffett has called them in the past, put options can be weapons of mass destruction on your account. I will show you how to use options properly to generate awesome cash flow and return in your account!
Let me show you when selling these put options would not be a safe trade. As you have seen here, selling put options can be safe if you’re selling it in stock that you’d be happy to own, and you have the cash to buy the stock. However, as you increase the amount of leverage and margin you are using to make option trades, that same stock that I had 10 contracts in, AT&T which was a safe and smart trade in my opinion, can turn into an extremely bad situation if I traded 394 contracts.
The risk when we sell put options is that the stock declines below the strike price that we sold a put option at and we are forced to buy the stock at a higher price than what it is currently selling for in the market. Don’t get me wrong though. Selling put options is my number one favorite strategy of all time when it comes to trading.
Happy investing!
Randy Perez
#optionstrategy #optionstradingcoach #OptionsTradingTutorial
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