Ultimate Guide To Selling A Covered Put Spread

http://optionalpha.com - Writing covered puts is a bearish options trading strategy involving the selling of ATM or OTM put option below the market price while shorting the 100 shares of the underlying stock. By selling a the put option you take in a credit that is then used to widen out your break-even point above where you sold the shares of stock. For example, if you sold stock at $50 and the selling of the put option collected $1.50 in credit your new break-even price would be higher at $51.50 for the overall position. Hint: this strategy's payoff diagram looks identical to just simply using a short call above the market. and is less capital intensive. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

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