Covered Put Options Strategy (Guide + Examples)



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14 thoughts on “Covered Put Options Strategy (Guide + Examples)”

  1. Can you explain the math of why the profit is fixed after the price goes below the short put strike price?

  2. Why would anyone use a covered put if the risk is the same as the shorting the stock but the returns are limited?

  3. Hi, 6:53 How come potential loss is unlimited?? As long as you have 4.7k to buy the shares in case you are assigned, you should be good?

  4. Hi Chris, I got a little confused with your presentation on the covered puts, especially with the graphs because your explanation and examples were to execute the covered put + short the stock at the same time. my covered put play would be to only sell the covered put to collect the premium and get assign the stock if it hits my target strike price (this is only because I don't mind owning the stock which now I can buy at a lower strike price while collecting the premium for it), ie a cash secured put. I am not sure if your covered put and a cash secured put strategy is somewhat the same, and if different, isn't a cash secured put better as it is a more win-win strategy? tks.

  5. Help please. I got flat footed and failed to close a naked call position (TSLA @ 1500). 200 shares short were assigned. Now I'm in damage control mode. My concern is margin call/gap up soon. Would you suggest a covered put strategy? If so what strike prices/exp suggestions. REALLY would appreciate it. I feel like a dummy.

  6. hey great vid, so ive got a quick question. Im short a few stocks, but as you know the market has rallied so im trapped holding them. You think i should sell otm puts to hedge, or just take the loss and cover?

  7. is the definition of a covered put the same as selling a put?

    if so, I believe the stock price will rise is a good strategy not a bad one

    because I get premium for the low strike price and the stock goes up, thus buying back the put will be less not more

    i am confused

  8. In your description of the short put of 85 dollars and collecting 3 dollars in premium, doesn't it mean that the maximum you can profit is 300 dollars instead of 800 dollars? Also, if you are selling a put, shouldn't the put diagram go to the right instead of to the left?

  9. I've been loving your channel. I used to be an AlphaOptions fan, but you are slowly making me a new fan. New subscriber thanks! Daniel.

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