Yesterday in my article on selling options for income, I discussed two different types of stocks.
Stock 1: Selling Options For Income And Never Owning Shares
The first stock is that one where an investor sells options for income with no intention of ever owning shares.
Stock 2: Selling Options For Income But Would Own Shares If Assigned
The second stock is that which an investor sells options for income against, but would own shares if they were assigned.
Stock 2 Has Distinct Advantages
Selling options for income against stocks I would own gives me a distinct advantage. Often I can roll my short put or short call options sideways while the stock moves up and down, sometimes placing my trade in the money and other times, out of the money. All the while I can continue to earn income and remain unconcerned about the stock since I would own it.
Generating Income Through Selling Options For Income Even When Assigned Shares
If assigned shares in a stock after selling options for income, I can continue to generate income through selling further options such as covered calls, or more put options to continue to generate income and assist my overall trade in averaging my cost lower over time.
Today’s trades where I am selling options for income have two such stocks again.
The rest of this selling options for income trade alert and ideas article is for FullyInformed Members.
Selling Options For Income Trade Alerts for Aug 2 2017
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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