July 2021 – 10 Delta Trading

Cash Secured Puts

February 21, 2024July 25, 2021 by mgdonithan

Get paid to wait for a stock to hit your buy-price. When you want to buy a certain stock, do you just go into the market and pay whatever it’s selling for at the moment (a Market order)? Nothing wrong with that, but I suspect most people will put in a Limit order to buy at a certain price, or at least wait for a pullback before buying, without a contingency order in place. Before introducing Cash Secured Puts (CSPs), …

Covered Calls

July 28, 2021July 25, 2021 by mgdonithan

I was talking to a coworker this past week who owns a lot of individual stocks for the long term. I explained to him how he could sell covered calls (CCs) on them, which would be an essentially risk-free* way to generate income from assets he already owned and was planning to hold regardless. (*With covered calls there are two supposed “risks”: 1) the stock price moves down; but that would happen anyway even if you didn’t sell calls against …

Month: July 2021