Cash Secured Puts Explained - A Guide for Dummies

27/07/2023 15 min

Listen "Cash Secured Puts Explained - A Guide for Dummies"

Episode Synopsis


Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Signup now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/R_Ez1ulGgQk.

Cash secured puts may seem like an easy way to generate income, but selling put options is best suited for investors with larger amounts of money to work with. Our tutorial on selling put options looks at the basics of a put option on both sides of the trade, and how selling cash secured puts doesn't necessarily work in your advantage if you have strong bullish convictions on a stock (that's why you're trying to purchase it through selling puts, right?). Our guide on cash secured puts explained is a must-watch for newbie investors who might be tempted to think that selling puts on their Robinhood account is an easy way to generate income. Always remember, there is no such thing as a free lunch. We also explore the notion of dollar-cost-averaging and diversification, both of which dictate which stocks you can sell cash secured puts for.