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Selling PUT options

Option is a contract in the future to buy or sell a stock at agreed price (strike price). Options are used to hedge (insurance). (detailed explanation for beginners)

Other uses:

Buying PUT option – betting that stock will go down.

Buying CALL option – betting (with leverage) that stock will go up.

The new concept that I have been introduced by Michael is Selling PUT options

Choosing the right stock. I sell put options only on those stocks that I want to own.

Setting the strike price and expiration date. I usually set the strike price with 10% discount and 1-2 months expiration date.


I will never buy individual stocks