Sell Put Options strategy 's characteristics:
- Sell Put Options is a strategy in online options trading that sell the put options first and then buy them later.
- order : sell to open put options
- positive : time decay give advantage to the seller
- negative : limited profits, unlimited risk ( until the stock price goes to zero )
- market outlook : bullish or expect the stock price goes up so we want the put options expire worthless and keep the premium
- profits = put options premium
- loss = unlimited
- BEP = put option strike price + put option premium
- cautions : this strategy usually used in good stocks, the good stocks price usually is high, so although the winning probability is high but the risk is also high. So for individual traders , don't do it !
Futures Options Brokers at http://futuresoptionsbrokers.blogspot.com/.
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