On this page you can find valuable information on trading options, namely cash-secured puts (CSP).
We’ll provide you with the detailed information on how to sell a put option correctly with the maximum benefit to your trading account.
Many options traders consider csp the best option trading strategy and use it more and more often at the moment.
Its popularity is also due to the fact that it is also one of the stages of another popular strategy called wheel options or covered strangle.
Why do traders decide to trade wheels?
- It’s a rather simple strategy that generates immediate profit on the account after selling cash-secured puts.
- It’s easy to select stocks to sell put option since all important information for that you can find in the CSP screener by 5Greeks.
- It’s pretty easy to manage the option wheel, since you can choose different scenarios for that – rolling, being assigned or turning it to the covered calls.
Why do traders sell put option?
- Traders know how much profit they can get when selling puts since this amount equals premium and is limited. Stable cash-flow is the King when running the strategy.
- Selling put options can be an alternative to the long stock position and is more beneficial in position medium-term trading.
- Puts are often used as a tool to protect floating profit.
We believe after reading these articles you’ll have a clear view on how to sell puts that will definitely result in successful trading in the long run.