How to Sell Cash-Secured Puts on AMZN : Beginner's Tutorial
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- Опубліковано 22 сер 2024
- My favorite HYSA: bit.ly/4eui2Vu
In this video, I share a step-by-step tutorial on how to sell cash secured puts on AMZN for $280. I go over how to do this on the Think or Swim Web Platform and the pros and cons of using this strategy.
Let me know if you have questions in the comments!
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Can you remake a covered call video to tie with the ending. To help understand the wheel strategy
Don't forget to do it after earnings. Trading before earnings could potentially make a big loss. Up and downgrades are unpredicatable.
Absolutely! There is high IV during this time.
@@CalltoLeap So did you or would you have held over that ER? Of course, in hindsight, it would have been a big winner, but it could have been just the opposite.
Good explination of the process but people beginner I'm sure don't have 125k. Let alone enough to do this with good companies without margin and if they can there not beginners
This was great thank you so much ! Can you make your next video the exact same with Amazon showing the covered call side ? 🙏🏻🤗
!!!
Sure thing!
Please do video on covered call and wheel strategy
You got it!
Please do a video on covered calls. Thanks
The most important not mentioned. You need to keep a cash enough to buy the shares until your contract expires.
Mentioned at 8:20
Thanks. Excellent presentation. Answered a lot of open questions I had.
Great video and instructions. I just learned that for this specific strategy, you can also sell a credit put spread 125 and 120 in order to make more money
please do sell covered call and the wheel strategy
You got it! If other people want to see this, I’ll most likely make one next week.
Thank you for the great explanation. I have a question about how this whole option thing works: how are we able to make money selling cash secured puts? Why would someone pay money to sell shares at a lower price?
How much does this translate over for smaller accounts? What factors should be accounted for for more volatile/cheaper stocks?
Thank you for explaining
You're welcome
Wow! Thanks for all this info. Life changing
Great video. I need to watch over and over again.
Clear, easy to understand explanation, thank you. Interested in a video about covered calls and the wheel strategy. Thanks.
Thank you!
Thank you for your explanation
Glad it was helpful!
Good explanation. Thank you.
Glad it was helpful!
Totally Agree…Good content of value for free. TY
can u make a video on theta decay?
The premiums are not very good....seems like alot of other better options out there.
You do a good job kid,, thanks.
Please make a video on covered calls 🎉
You got it!
Thank you, that was very helpful! Curious tho, who’s paying the $280, or asked another way, where does the $280 come from? Thanks again!
as the example goes you are an insurance company and the $280 is your premium.
Yep! The put option contract buyer is the one who pays the $280 from their account.
How do you determine what your strike price is?
Ive always hoped someone would allow us to be connected to someone who does this and tells us when and what to buy/sell through text alerts so we can do exactly what you are doing... do you offer this?
Great video Steve, thanks so much!
Which broker(s) or platform(s) would you recommend for options trading?
Considering costs per contract , user experience and interface etc.
Can you do video on Long Puts pros and cons. thanks.
How do you handle earnings dates- amazons is Aug 2. It is more volatile now. If this strategy is meant for income- would you wait until earnings?
I would either skip the trade altogether or sell a further OTM contract.
Please do a video on how to use margin on Cash secured puts
lots of value thank you
I'm glad it did! Thanks for the support!
I use robinhood to sell puts on. Do you know why it looks like I'm loosing money when price is below my strike price? Will I actually lose money?
What happens if at time of expiration the price is out of the money but the option value has decreased. Do you owe on that negative option value if you choose to let it expire and not buy to close?
Great video. Clearly explained the cash secured put. One quick question...if the stock price goes below $125 do you buy the stock at that price or does it automatically come out of your account?
Your brokerage will automatically purchases the shares if the stock is below the strike price on the day of expiration. Make sure to have the capital to buy the 100 shares.
This is literally the 1st video I've watched on puts. Can you explain why the other party is willing to pay a premium to sell theor shares to you if price goes down? They still end up losing money. Why wouldn't they just sell on the open market and save themselves the premium?
Why is it when I scroll through the puts - there are strike prices that are higher than the actual price of the stock?
Good video. The only issue I see is you need a lot of cash in your account in case you get assigned the shares. Let’s say I don’t want to be assigned the shares, can I pick a strike price way below the current price, does that work to help not get assigned the shares but just collect the premium?
yes you can pick way below the current price, but your premium will be low as well. Higher strike price higher Premium..
When i attempted to do a cash secure put and the strike price is not met, the option gets cancelled and i dont get any premium??
I know this is a beginner video and you like the $125 support" Strike price, for the $2.8 $280 premium but let's get real. First, you're buying a Put- on a up day, second you're taking way too much risk. The $120 strike price on a down day, at the $1.89.... $189 premium with a Delta of -.20 is more like real world trading. Just my 2 cents
Can you please do in fidelity
Do you not use Delta to determine your risk of assignment?
I do!
If no one ever buys and you stay above the $125 for amazon then you continue to collect the premium as it is called, right? So if it never goes below $125 for like a year you collect $280 for 12 months? Also, can I use the example as my own now, 8/15/23 using same September 1, 2023 date you chose? 😆 I really don’t know much still….
If AMZN stays above the strike price, then you'll never have to buy the shares by the expiration date and get to keep the $280 of premium. :)
最高素晴らしい致します👍👍👍
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Do you offer paid content services?
You can check out my website. It’s in the description. See if my program is right for you 👍
why would anyone buy it though i dont get it at all?
Are suggesting that beginners sell puts? That's kind of risky for beginners, don't you think?
👏🏼
then you lose it all when it goes below and you have to buy the stock.
Not necessarily, if you do a cash secured put, it's because you would like to own the stock. And if you get assigned, you start a covered call. Before you enter a trade, you should also have a plan for an exit strategy.
This is not a get rich quick strategy. 👍
@@ronaldo111811 cds lol
@@ronaldo111811 thanks
who pays you the $280.00??
The put option buyer pays the $280 from their account.
@@CalltoLeap so if I buy a put option I have to pay the $280???