DATE: July 15, 2013 QUESTION:Can you discuss the potential opportunities and risks of selling put options? ANSWER:Selling put options is a strategy that allows you to be paid a premium in return for assuming the obligation to buy a particular stock. The premium received gives you some limited benefit by lowering your break-even. Selling put options may also give you the opportunity to purchase a stock for less than its current price. As an investor, if you are interested in investing in a stock, you may want to consider selling a put as a means of buying that stock. To learn more about selling put options, view this week's segment of "Ask the Institute."
Trade options, stocks, futures + forex on a single platform. thinkorswim by TD Ameritrade.
OPTIONS+ is the new mobile options calculator for iPhone users. Download it today.
Get up to $500. Trade commission free for 90 days. Free tools for advanced traders.
Commission Free Trades. Get up to $500 - trade commission free for 90 days & advanced tools.
Download CBOE's new iOS app featuring detailed quotes & option chains, CBOETV, interactive courses, and more.