Three Stocks Ripe for Selling Puts
There are two benefits to selling a put: generating income and providing the option to buy shares at a lower price. To actually benefit from these two conditions, one condition must be met for put-selling to work: you must -- I repeat must -- be comfortable owning the underlying stock.
Selling a put requires the seller of the put option to agree to take delivery of the underlying stock at the agreed upon exercise price within a specified period. If that exercise price is not reached during the option window, the premium is pocketed. If the exercise price is reached, then the put-seller must buy the stock at the exercise price and keep the put-premium, thereby reducing the actual cost basis in the underlying stock....412 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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