
The Cash Secured Put Strategy. What is it? and how does it work?
This video shows you how to evaluate a group of stocks and narrow down the candidates to find stocks you would not mind owning at a lower price.
Let's explore the different strikes and see what kind of credit works best for your comfort level.
The Trading Plan lesson spells out the Cash Secured Put Strategy and parameters we are going to uses for this course. In later lessons we discuss additional nuances and tweaks that can customize this strategy to fit your needs as you become comfortable with the trade.
Let's put on our first series of 5 trades so we can put this strategy to the test.
Let's check the status of the first series of 5 trades that we set up.
It is the day before expiration for the Put Options we have sold. Let's check and see how the trades are doing!
April Expiration Day is upon us. Here are the results of the first set of 5 trades. Let's see how much of the initial credits we were able to keep.
Let's put on our second series of 5 trades so we can put this strategy to the test again.
This second set of trades is showing a good profit after just 7 days. Let's see why this has happened!
The market has pulled back sharply in the past few days. Let's see how this pullback affects the Cash Secured Put Strategy in the short term, and let's evaluate what the prognosis is for expiration.
May Expiration Day is here and the results are in for the second set of 5 trades.
Looks like we will be Put the Stock on RIOT this cycle. Let's see what this means to the overall profit and loss, and also discuss some other ways you may want to handle this situation once you are comfortable with the Strategy.
While it is best to have the cash to back your position size, this trade example kicks it up a notch and shows you an example of how to plan to adjust or roll your trade if it gets in trouble as an alternative to just being Put the stock.
Time to Evaluate Adjustment Choices. CSCO has pulled back a bit and if the slide continues, we may need to take action. Let's discuss the possibilities.
With most of the profit available for the taking, see why this trade was closed out early instead of holding through earnings.
Another new wrinkle to the Cash Secured Put. Let's add a longer duration protective put into the mix and create a diagonal trade that lessens the downside risk.
Planning ahead of time for the possible adjustments you will make takes the pressure off. Let's discuss the choices and the game plan for this PFE trade.
The PFE position is evaluated and a decision to exit the trade is made. See why in this video?
Thank you and good Luck!
The Cash Secured Put Strategy is a great strategy where you want to buy a stock or a group of stocks, but you want to buy them on sale.
Maybe you like a stock and you feel it has moved up too high and you are waiting for a pull back. Or maybe you feel a stock is beaten down and it is ready to turn around. In either case, you are bullish on the stock in the long term.
The Cash Secured Put Strategy will let you take in a credit by selling a Put, and if the stock goes down below the strike price of the Put that you sold at expiration, you get the stock on sale at the price you wanted.
And, if the price stays above the strike price of the Put you sold, you get to keep the credit you received when you put the trade on.
The good news is no matter what happens, you should be okay with the result.
Where traders go wrong is they put on too large of a size position and they say they would not mind owning the stock, but when the stock moves down a little, they start to panic, because they are in too large of a position for their current comfort level or they really did not want to own the stock.
Join me, Steve Liguori, for this informative course on how to utilize the Cash Secure Put strategy to generate monthly credits to your account. You can also buy stocks on sale at the price you are willing to pay!
But wait, this course does not stop at the easy version of the strategy. There are many other tips and ideas provided that explain other ways to use the strategy, and the adjustment choices that you can make if you decide you are ready to kick it up a notch.
Risk Pictures and Trade Examples, including Setup and Analysis from start to finish are explained in detail in this course.
The time is now to add this strategy to your trading arsenal!
Let’s get started!