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What is the Risk of SELLING PUT – You Own the Stock

Many brokers, many people will tell you selling put is a very risky business. Tell me to share with you the truth! The truth is these people are lying to you.

Every financial market comes with a certain risk. As long as trader know what are those risk and manage it, it is not “very risky”.

What is the risk of selling a put?

You end up owning the stock. That is it, you own the stock – that is the maximum risk. Is owning a stock very risky. LOL

Especially, if you own those quality stock or stock you would love to own. What risk is that!

So, rule number one, don’t get intimidated by people who just want to intimidate you, and you miss a great opportunity to create income for yourself and family.

You can be total newbies in options trading and still can make money, as long as you can follow the instruction in this service. In this Selling Put Subscription service, I will hand hold you what to sell, at what price, for how long the option expires, what kind of premium (income) we should target.

For example, Facebook is trading at $193 at the moment, we sell 1 contract (100 shares)  a put option on Facebook and collect an income of $4.85/share. Our income generated immediately is $485.

And let’s say, Facebook price drop to below $160 and now we own the Facebook 100 shares. Is this something very horrible to own 100 shares of facebook? Come on this is one of the top blue chip company. Do we see ant company out there right now, has a similar business concept as Facebook? The answer is “No”. There is no competition as far as Facebook’s business model is a concern. So, now I own a great company with not competitors. What so bad about owning a great company! Why are brokers and everyone you seek advise from are telling you selling put option is very risky..

Now, that we own the shares of Facebook. We are not going to let our Facebook shares sit quietly and collect dust. We are going to turn our Facebook shares and generate another new income for us, which is to sell a call.

We now own 100 shares of Facebook, and we sell a call and receive another new income of $5.75/share, which is USD575.

That is no bad! We sell option and received USD485 first leg, and we sell a call and collected another USD575. Total income received USD1,060. A simple way to generate income for yourself month after month. And many people are telling you Selling option is very risky.

Yes, if you do not understand how it works, everything can be very risky. But in my Option Selling Trade alert, you do not need to learn why and how. All you need to do is simply follow my trade call and decide if you want to trade. How difficult can that be?

 

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