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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
