Selling Cash-Secured Puts: Multiple Applications: Part I + Tuesday’s Webinar Registration Link

Selling cash-secured puts is a low-risk option-selling strategy where the seller undertakes the contractual obligations to buy shares at the strike price, by the expiration date. In return for undertaking this obligation, an option premium is collected. There are many ways these trades can be crafted, and this article will provide an overview of several of these applications. This is part I of a 2-part series which will be concluded in the next blog publication. Practical applications of selling cash-secured puts –Traditional put-selling –PCP (wheel) strategy –Buy a stock at a discount instead of a limit order –Ultra-low-risk put strategies Delta Implied volatility Traditional put-selling After selecting an elite-performing stock (or ETF), an out-of-the-money cash-secured put is sold, agreeing t buy the shares at the lower strike by the expiration date. Here are the option-chain and initial trade entries & calculations using the BCI Trade Management Calculator: ETSY Put Option-Chain ETSY: Trade Entries into the Trade Management Calculator ETSY: Initial Trade Calculations Yellow cells: Breakeven price points Brown cells: Initial 29-day returns and purchase discount amount, if exercised The PCP (Put-Call-Put or “wheel”) Strategy Strategy protocol Sell an OTM cash-secured put If no exercise at expiration, use the freed-up cash to then secure another cash-secured put If the put is exercised, write a covered call, ITM for a defensive posture or OTM for a more aggressive position If the covered call is not exercised at expiration, write another covered call for the next contract cycle If the covered call is exercised, use the cash from the stock sale to then secure another put sale Graphic representation of PCP The PCP Strategy Discussion There are multiple ways we can implement selling cash-secured puts. This article provided an overview of 2 such applications. In our next publication, buying a stock at a discount and 2 ultra-low-risk methodologies will be discussed. Premium Member Benefits Video: This is a great time to join our premium member community with its stock screening and educational (over 250 videos) benefits. We offer more benefits than ever before. For information, click here. For video explanation, click here. Your generous testimonials Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to share some of these testimonials in our blog articles. We will never use a last name unless given permission: Dear Alan: Received your latest book, wow!!!. Let me borrow a legal phase “your newest book is wonderfully ON POINT” As soon as it arrived, I started reading it and I couldn’t put it down. You are a wonderful, blessed author!! I have not been blessed with the ability of a “fast reader”. My wife says I read slow but remember what I read. Thanks for the color in the text, something missing in most books. When I was a high school student I fell in love with Printing and thought it would be my profession until the computer world put a damper on that thought. But I understand what it takes to put color into a book signature and why most publishers stay with only black ink. Your educational writings have created a new “Covered Call Student”. Thank you for your teaching. Sam Upcoming events 1. Wealth365 Investor Summit Tuesday July 11th 10 AM ET – 11 AM ET Covered Call Writing: Multiple Applications Based on Current Market Conditions Real-life examples with Invesco QQQ Trust (Nasdaq: QQQ) Covered call writing is a low-risk option-selling strategy geared to generating cash flow with capital preservation a key requirement. This presentation will demonstrate how the strategy can be crafted to benefit in all market environments. Market situations highlighted are: Normal to bull markets Bear and volatile markets Low interest-rate environments A popular large-cap technology exchange-traded fund, Invesco QQQ Trust, will be used to establish rules and guidelines to benefit in these market circumstances. July 11th 10 AM ET – 11 AM ET Covered Call Writing: Multiple Applications Based on Current Market Conditions Real-life examples with Invesco QQQ Trust (Nasdaq: QQQ) Covered call writing is a low-risk option-selling strategy geared to generating cash flow with capital preservation a key requirement. This presentation will demonstrate how the strategy can be crafted to benefit in all market environments. Market situations highlighted are: Normal to bull markets Bear and volatile markets Low interest-rate environments A popular large-cap technology exchange-traded fund, Invesco QQQ Trust, will be used to establish rules and guidelines to benefit in these market circumstances. Register for free here. Presentation time: This Tuesday, July 11th 10 AM ET. 2. Orlando Money Show Live Event October 29th – October 31st Details to follow. 3. AAII Orange County, California Chapter Saturday November 11, 2023 Details to follow. Alan speaking at a Money Show event********************************************************************************************************************** [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all.[Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( [Selling Cash-Secured Puts: Multiple Applications: Part I + Tuesday’s Webinar Registration Link](?site= Selling cash-secured puts is a low-risk option-selling strategy where the seller undertakes the contractual obligations to buy shares at the strike price, by the expiration date. In return for undertaking this obligation, an option premium is collected. There are many ways these trades can be crafted, and this article will provide an overview of several of these applications. This is part I of a 2-part series which will be concluded in the next blog publication. Practical applications of selling cash-secured puts –Traditional put-selling –PCP (wheel) strategy –Buy a stock at a discount instead of a limit order –Ultra-low-risk put strategies Delta Implied volatility Traditional put-selling After selecting an elite-performing stock (or ETF), an out-of-the-money cash-secured put is sold, agreeing t buy the shares at the lower strike by the expiration date. Here are the option-chain and initial trade entries & calculations using the BCI Trade Management Calculator: ETSY Put Option-Chain ETSY: Trade Entries into the Trade Management Calculator ETSY: Initial Trade Calculations Yellow cells: Breakeven price points Brown cells: Initial 29-day returns and purchase discount amount, if exercised The PCP (Put-Call-Put or “wheel”) Strategy Strategy protocol Sell an OTM cash-secured put If no exercise at expiration, use the freed-up cash to then secure another cash-secured put If the put is exercised, write a covered call, ITM for a defensive posture or OTM for a more aggressive position If the covered call is not exercised at expiration, write another covered call for the next contract cycle If the covered call is exercised, use the cash from the stock sale to then secure another put sale Graphic representation of PCP The PCP Strategy Discussion There are multiple ways we can implement selling cash-secured puts. This article provided an overview of 2 such applications. In our next publication, buying a stock at a discount and 2 ultra-low-risk methodologies will be discussed. Premium Member Benefits Video: This is a great time to join our premium member community with its stock screening and educational (over 250 videos) benefits. We offer more benefits than ever before. For information, click here. For video explanation, click here. Your generous testimonials Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to share some of these testimonials in our blog articles. We will never use a last name unless given permission: Dear Alan: Received your latest book, wow!!!. Let me borrow a legal phase “your newest book is wonderfully ON POINT” As soon as it arrived, I started reading it and I couldn’t put it down. You are a wonderful, blessed author!! I have not been blessed with the ability of a “fast reader”. My wife says I read slow but remember what I read. Thanks for the color in the text, something missing in most books. When I was a high school student I fell in love with Printing and thought it would be my profession until the computer world put a damper on that thought. But I understand what it takes to put color into a book signature and why most publishers stay with only black ink. Your educational writings have created a new “Covered Call Student”. Thank you for your teaching. Sam Upcoming events 1. Wealth365 Investor Summit Tuesday July 11th 10 AM ET – 11 AM ET Covered Call Writing: Multiple Applications Based on Current Market Conditions Real-life examples with Invesco QQQ Trust (Nasdaq: QQQ) Covered call writing is a low-risk option-selling strategy geared to generating cash flow with capital preservation a key requirement. This presentation will demonstrate how the strategy can be crafted to benefit in all market environments. Market situations highlighted are: Normal to bull markets Bear and volatile markets Low interest-rate environments A popular large-cap technology exchange-traded fund, Invesco QQQ Trust, will be used to establish rules and guidelines to benefit in these market circumstances. July 11th 10 AM ET – 11 AM ET Covered Call Writing: Multiple Applications Based on Current Market Conditions Real-life examples with Invesco QQQ Trust (Nasdaq: QQQ) Covered call writing is a low-risk option-selling strategy geared to generating cash flow with capital preservation a key requirement. This presentation will demonstrate how the strategy can be crafted to benefit in all market environments. Market situations highlighted are: Normal to bull markets Bear and volatile markets Low interest-rate environments A popular large-cap technology exchange-traded fund, Invesco QQQ Trust, will be used to establish rules and guidelines to benefit in these market circumstances. Register for free here. Presentation time: This Tuesday, July 11th 10 AM ET. 2. Orlando Money Show Live Event October 29th – October 31st Details to follow. 3. AAII Orange County, California Chapter Saturday November 11, 2023 Details to follow. Alan speaking at a Money Show event********************************************************************************************************************** [Continue Reading...](?site= [Selling Cash-Secured Puts: Multiple Applications: Part I + Tuesday’s Webinar Registration Link]( And, in case you missed it: - [Welcome to the Global Financial Crisis of 2023 (Part Six)](?site= - [It’s Time to Get a Second Opinion on Inflation and Use Some Home Remedies to Escape it](?site= - [Ahead of Prime Day, Here’s Founder Jeff Bezos’ Net Worth](?site= - [Guesstimates on July 7, 2023](?site= - [Fundamental Analysis of Tata Elxsi – Financials, Future Plans & More](?site= - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [Protect Your Money: The Fed’s New Tracking Plan!]( In the past, we've seen governments freeze bank accounts - Brazil in 1990, Cyprus in 2013, and even Canada in 2022. 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