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How To Sell Puts For Beginners | Options Trading
Рет қаралды 6,124
Күн бұрынIn this video, I walk through my strategy on how to sell a put.
Selling put options is a simple way to make monthly income. Take a look at my current trade with WYNN stock and see why I sold a put contract on WYNN.
My primary investment strategy is long term dividend investing. However, I've recently learned about a strategy that has been working great for me and it's bringing a lot more income.
Selling cash secured puts for premium. This neutral strategy allows me to make money in both bull and bear markets. This strategy is suitable for income investors and it creates stable passive income.
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👉🏻 CHECK OUT MY REFERENCE VIDEOS:
How To Sell Covered Calls: • How To Sell Covered Ca...
How To Sell Cash Covered Puts: • How To Sell Cash Cover...
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❗️DISCLAIMERS:
- I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just my viewpoints, and ideas for your entertainment only.
#sellingputs #cashcoveredputs #cashsecuredput #sellingoptions
@HiddenFreedom 3 жыл бұрын
Not sure why people are thumbs downing the vide. I thought it was well put together Benny. Every broker is different, but you should only have to put up 10% maintenance margin. So in this case about $700. Obviously having $7000 in the account will cover you if assigned, but you're not using margin unless assigned. I love this strategy is it's an easy money maker. The people buying these options are clueless.
@ThinkMoneyBenny 3 жыл бұрын
lol I might have picked up a few haters apparently, or maybe they don’t like options bc they don’t understand it. Ahh yes, that was my exact thought the other day, who is buy these contracts!? 😆
@HiddenFreedom 3 жыл бұрын
@@ThinkMoneyBenny suckers
@ThinkMoneyBenny 3 жыл бұрын
Hidden Freedom Investing haha thanks Dave!
@FrankMularcik 3 жыл бұрын
Awesome that this is working well for you I'm definitely looking to start this once my account gets big enough, thanks for sharing!
@ThinkMoneyBenny 3 жыл бұрын
Go for it! yea that's all it takes, is a bigger sized portfolio.
@StockOverflow 3 жыл бұрын
That's a really good strategy on a position I'm ready to enter. I never thought about doing it that way!
@ThinkMoneyBenny 3 жыл бұрын
from now on this is how I'm going to enter positions, no questions asked!
@CanadianFinancePro 3 жыл бұрын
Yessss simple and easy. I've been getting too complicated with intermediate options strategies, CSP has def been my best money maker though. I actually have a similar video breaking down the basics of CC and CSP ... it's hard not to overlap content!
@ThinkMoneyBenny 3 жыл бұрын
Yea bro keep it simple & double down on what’s working!
@keithnoland3691 3 жыл бұрын
Thanks for the info. I’m still learning on how to trading options. Maybe one day I will jump out there. Keep teaching bro!
@ThinkMoneyBenny 3 жыл бұрын
learning by seeing videos and then actually doing it is how you can learn fast
@ShariKaye 3 жыл бұрын
I’m lost 😞. I probably have no business getting into puts at this time. Going to do more research. Thanks for putting this strategy into my awareness!
@ThinkMoneyBenny 3 жыл бұрын
It’s for large size portfolio’s and you definitely have to research & understand the mechanics behind it. After that you’re good to go! It’s a lot simpler than it seems 📈
@citizenoftheyearCC 3 жыл бұрын
I just transfered $4000 from my bank to Robinhood. I am going to do my first cash covered put on KO!
@ThinkMoneyBenny 3 жыл бұрын
Perfect stock to start on, and it’s predictable. I did my first one with Altria... about the same cash amount needed
@0519fl 3 жыл бұрын
Hi Benny! Thank you very much for your awesome video. It has helped me understand how to think about money 📈. Options scare me but I'm glad you made this video. Super informative for someone that is new to this.
@ThinkMoneyBenny 3 жыл бұрын
Flavi thank you for watching! and welcome to the channel 💯💯
@InvestingwithNickCowles 3 жыл бұрын
Options is something I have no concept of, Like I said yesterday in our text. One day ill need a whole class on this. LOL
@ThinkMoneyBenny 3 жыл бұрын
can't wait till you get it so we can discuss plays!
@TRAVIS-WHITE 3 жыл бұрын
Puts are a very interesting way of investing... not necessarily for me! But you did a really good job on this video! Keep up the good work 👍 Like button smashed.
@ThinkMoneyBenny 3 жыл бұрын
Thanks travis!
@alphaangel976 3 жыл бұрын
fire gains on that wynn 🔥simple strategy not many take the time to learn
@ThinkMoneyBenny 3 жыл бұрын
let's goo
@RossCampoli 3 жыл бұрын
Options are super interesting. Back in the day, I liked writing covered calls 📈
@ThinkMoneyBenny 3 жыл бұрын
Ross Campoli - Business Videos you don’t anymore? Howcome
@KelechIwuaba 3 жыл бұрын
The cash part is what most people leave out
@ThinkMoneyBenny 3 жыл бұрын
KelechIwuaba i’ve noticed that lol
@JazminBautista 3 жыл бұрын
6:39 no pun intended 😂😂 with a serious face
@ThinkMoneyBenny 3 жыл бұрын
Lmaoo 🤭
@ogvlad3882 3 жыл бұрын
Dope content as always Benny let’s gooo
@ThinkMoneyBenny 3 жыл бұрын
You already know!
@harianapolanco6330 3 жыл бұрын
Interesting way to make passive income Benny! Thanks for sharing this strategy!
@ThinkMoneyBenny 3 жыл бұрын
Thanks you!
@millennialmoneymom 3 жыл бұрын
Hey Benny! Have you used active trader pro from Fidelity for options trading?
@ThinkMoneyBenny 3 жыл бұрын
Melissa G hey Mel... I did try it, and I didn’t like the interface. It makes everything seem more complicated than it has to be. All I use is Robinhood to see prices, options chain & then I make my move. I don’t do any TA, I don’t enjoy it.
@nataniasarita8018 3 жыл бұрын
Great videoo the wheel strategyyy
@ThinkMoneyBenny 3 жыл бұрын
Thanks!
@exteriorpros2221 3 жыл бұрын
Awesome video brother! I'm new to day trading, just still on Questrade Practice. About to switch over to Real Money this week. You in the Canada Region?
@ThinkMoneyBenny 3 жыл бұрын
Nice, it’s all about gaining experience! Na.. from NY’
@LearnGoals 3 жыл бұрын
*_VERY SIMPLE AND EASY, GREAT IDEA, THANK YOU FOR SHARING!_*
@ThinkMoneyBenny 3 жыл бұрын
Gigi Gaskaite thanks for stopping by gigi!
@wildmexican12 3 жыл бұрын
Im still very cautious about options but something i would like to learn more about.
@ThinkMoneyBenny 3 жыл бұрын
Best way to learn is to jump in, finding a mentor helps! That’s how I learned 💯
@alfaro7192 3 жыл бұрын
Finally I understand this. Thank you man. I just subscribed
@ThinkMoneyBenny 3 жыл бұрын
Welcome to the channel man thanks!
@farzinone 3 жыл бұрын
Would you please tell me what would happen if I buy my position to close much earlier than the expiration date? Thanks
@ThinkMoneyBenny 3 жыл бұрын
if you buy your position before the expiration date then you are done with the trade. The goal is to sell it for more than what you buy it for & pocket the difference… OR let it expire and keep all of the money you sold it for.
@farzinone 3 жыл бұрын
@@ThinkMoneyBenny thank you for your immediate response. However, I was wondering if I get to keep any portion of that premium at all?
@playacabo6289 3 жыл бұрын
Very clear explanation. Will the trade not execute if you don’t have the cash to cover the 100 shares? Couldn’t you sell the put and then close the position before expiration to avoid buying the shares?
@ThinkMoneyBenny 3 жыл бұрын
it won’t execute if you don’t have the cash. And yes, to close the position, you would “buy to close” to take the “risk” of buying the shares off the table before expiration.
@ashleylongstreet4755 2 жыл бұрын
Can you do this if you already own 100 shares of a stock? Or is it better to sell the stock and having cash before selling a put contract
@CaseyBurnsInvesting 3 жыл бұрын
Seems like selling puts is great for bulls. Still learning options.
@ThinkMoneyBenny 3 жыл бұрын
Casey Burns Investing it’s great/ideal for bulls... but it’s also great for neutral plays as well, even if the stock stay the same till expiration you’re still cashing. Def look into it💰
@RealTalkCali 3 жыл бұрын
My ninja!! Thx bro
@ThinkMoneyBenny 3 жыл бұрын
& thank you for tuning in! 💯📈
@FED_RAGE 3 жыл бұрын
Most liquid IWM SPY QQQ and safer than individual stocks for premium generation through writing puts.
@ThinkMoneyBenny 3 жыл бұрын
QQQ is dope 📈
@Frugal101 3 жыл бұрын
Your setup is awesome 👌, great video 😊 very interesting and informative
@ThinkMoneyBenny 3 жыл бұрын
Thanks so much!
@xxIndridcold99xx 3 жыл бұрын
Best intro music
@ThinkMoneyBenny 3 жыл бұрын
Let’s GOO! Been getting a lot of feedback on that lol
@alloutgod2066 2 жыл бұрын
Hey man, loved the video very in depth and straight the point. I was just wondering, say I sold a put. I collect the premium from that immediately. Can I just close out of the position as soon as I collect the premium or do I have to wait until the expiration date to close it. I’m confused. Can you not just sell a put collect the premium get out of the trade and rinse and repeat?
@ThinkMoneyBenny 2 жыл бұрын
once you sell a put, u collect the premium immediately. that money is now yours. Yes you can get out of the put that same day, or whenever you want but you would need the stock to move up higher in a short amount of time so you can buy the put back for less than what you sold it for. And then you could pocket the difference.
@davidrajcula5839 3 жыл бұрын
Thank you for another excellent video!
@ThinkMoneyBenny 3 жыл бұрын
David Rajcula 💯✅✅ thanks!!
@sadynangeles7197 3 жыл бұрын
Dope content Benny keep it goinggg
@ThinkMoneyBenny 3 жыл бұрын
Yeaaa lets goo
@ajaxtv3671 3 жыл бұрын
are you doing "the wheel"?
@ThinkMoneyBenny 3 жыл бұрын
ajax88 yes, on selected stocks I am 💯🔥
@RodrigoMedeirosFinance 3 жыл бұрын
Option trading can be hard to understand, thanks for sharing!!
@ThinkMoneyBenny 3 жыл бұрын
no prob thanks for commenting !
@georgealley8272 3 жыл бұрын
Thanks just subbed
@ThinkMoneyBenny 3 жыл бұрын
George Alley thanks & welcome!
@stephenmuchko5122 3 жыл бұрын
Great video Benny thanks for sharing. I sold my cash covered put, are there any steps I need to take on expiration date to close things out?
@ThinkMoneyBenny 3 жыл бұрын
Thanks for the feedback Stephen. As far as steps to take, you’ll have to use your own judgement. If you see that you’re up a good amount before expiration, you may want to buy back the contract to secure profit. Or you can just let it expire... you will see the more you practice. 👍🏻
@stephenmuchko5122 3 жыл бұрын
@@ThinkMoneyBenny sounds good thank you ! Do you have any videos that show the process of buying back the contract early before expiration date ?
@ASH-mk7tg 3 жыл бұрын
Fireeee
@ThinkMoneyBenny 3 жыл бұрын
Lets goo
@gilbertquintanilla4082 3 жыл бұрын
so basically if you pick a low price of a the stock that you have been watching and knowing that has very little chance of falling to, you get paid as long as it doesnt go down to your strike price?
@ThinkMoneyBenny 3 жыл бұрын
Yes, but you get paid regardless if it does or doesn’t fall to that price. If it doesn’t fall to that price, You get paid + you get your money back. If it does fall below that price, you have to buy 100 shares at the strike price you chose but you also get that initial payment as a cushion.
@gilbertquintanilla4082 3 жыл бұрын
Think Money hold up... you saying if it his my strike price I have the buy the shares @ the strike price and I get paid for buying them?
@ThinkMoneyBenny 3 жыл бұрын
Yes. I just did it with DraftKings last week, I sold a put at the $44 strike expiring 7/30. I got $90 for that. If by 7/30 Draftkings is over $44. I get to keep that $90. And i get my $4,400 back as cash. If it’s under $44 by 7/30 ( let’s say $43 as an example) then I have to buy 100 shares at $44. BUT since I got paid $90 in premium, my real cost average will be $43.10 ( not $44) because I received $90)
@MariaAndersenCrypto 3 жыл бұрын
Great!🤗
@ThinkMoneyBenny 3 жыл бұрын
Thank you!
@CG-ss4no 3 жыл бұрын
Love the clorox on the side. Great video! Where did you get your cool shirt?
@ThinkMoneyBenny 3 жыл бұрын
C G CLX wipes are sold out everywhere ! Lol
@keithnoland3691 3 жыл бұрын
What do cash covered sell put option order require a higher level option agreement mean?
@ThinkMoneyBenny 3 жыл бұрын
yes on Fidelity you need to be at level 2
@keithnoland3691 3 жыл бұрын
Think Money I must be on level 1. Do level 1 do thing?
@ThinkMoneyBenny 3 жыл бұрын
with level one you can only sell covered calls. It’s pretty limited
@southbeach8127 3 жыл бұрын
hi, thanks, newbie here, what is those open P/L when selling a put?? do we need to care about that as long as we don't close the position prior to expiration date? thanks again !
@ThinkMoneyBenny 3 жыл бұрын
yea, that's just what the contracts are worth while you hold the position. you aren't actually losing or gaining money on the P/L
@southbeach8127 3 жыл бұрын
@@ThinkMoneyBenny thanks
@RedaHarras 3 жыл бұрын
just found your channel! great video! big like 56 and new sub!
@ThinkMoneyBenny 3 жыл бұрын
welcome to the channel !
@ThinkMoneyBenny 3 жыл бұрын
👉🏻Subscribe To My KZfaq Channel! Also, let me know if you sell puts as a strategy to make income!
@kevinhoalcraft 3 жыл бұрын
Your cost basis is a bit higher because you pay short term capital gains on premium, no?
@ThinkMoneyBenny 3 жыл бұрын
When you collect premium you do have to pay taxes on it, yes. I deal with that when the times comes to file. Always be prepared 👍🏻
@DFASMOOVE 3 жыл бұрын
I am interested in starting to do options but I don’t have as much cash to invest and afford to possibly not gain from, is there a way for beginners to start earning a profit off a couple hundred dollars ?
@ThinkMoneyBenny 3 жыл бұрын
yes, that's how I started learning with couple hundred dollars. So, with only a few hundred dollars I began learning by BUYING calls on cheaper stocks. This is riskier than the strategy I'm talking about in this video. You can potentially lose your money if your call/stock does not go up by expiration.
@FFGGuru 3 жыл бұрын
You are braver than I am, puts and calls scare me
@ThinkMoneyBenny 3 жыл бұрын
lol! well there are two sides to the coin, do you mean buying calls/puts or selling calls/puts....... buying is what scares me and makes me anxious.... selling on the other hand, I sleep like a baby, you don’t lose money when you sell
@FFGGuru 3 жыл бұрын
@@ThinkMoneyBenny Yeah buying options knowing that I could lose it all. Well you have a nice dividend portfolio, so it's good to have a piece to just play around with
@HighPotatoo 3 жыл бұрын
i have $17 right now and want to start getting into investing.. any suggestions for something I can afford rn.
@ThinkMoneyBenny 3 жыл бұрын
start a fidelity account and start buying fractional shares of your favorite companies, keep depositing money into your account
@harryauquilla6719 3 жыл бұрын
Fuck yeah love this info thanks bro. Always helpful listening to you
@ThinkMoneyBenny 3 жыл бұрын
let's goo!🚀
@Livetoeats 3 жыл бұрын
can you show how to close a cash secured put early?
@ThinkMoneyBenny 3 жыл бұрын
Yea sounds like a good video topic!
@Livetoeats 3 жыл бұрын
@@ThinkMoneyBenny thanks i want to start selling puts but i want to be able to get out early if I can. I thought once you sell the put all the premium goes in my account already though. I didn't know it builds up over time until expiration date
@ThinkMoneyBenny 3 жыл бұрын
The premium does go into your account right away. (you can check this by looking at your recent activity) or checking your cash position. However, it will not reflect your portfolio amount because that put contract still holds value in the market, and it’s price will fluctuate day to day. The closer it gets to expiration, the less value it will hold, and that’s when I start thinking about buying it back to secure my profit.
@thePlum 3 жыл бұрын
GENIUS
@ThinkMoneyBenny 3 жыл бұрын
Lets goo
@tammiegriffin5569 3 жыл бұрын
I'm going to be honest, Puts seem intimating to me. Just feels a little too advanced. I'm just not ready for it yet. Maybe in a few years when I have a larger portfolio. hehe
@ThinkMoneyBenny 3 жыл бұрын
Lol yea I get it.
@udarpavarota396 3 жыл бұрын
Teach me exactly how to do it on Webull.
@ThinkMoneyBenny 3 жыл бұрын
I dont use webull
@withinfifteen4162 3 жыл бұрын
Nice sharing. Friend here.
@ThinkMoneyBenny 3 жыл бұрын
WITHIN FIFTEEN lets goo
@withinfifteen4162 3 жыл бұрын
@@ThinkMoneyBenny done here. Hope too
@gilbertnicholas1582 3 жыл бұрын
I gotta get my cash position up in my account to start selling puts I need to get up around 15k but I keep buying stocks lol
@ThinkMoneyBenny 3 жыл бұрын
lol that's a good thing! keep building man!
@NicoleByron 3 жыл бұрын
this that boujieee option stuff lmao..... too much for ya girl lol works tho.... lmao
@ThinkMoneyBenny 3 жыл бұрын
lmfao I totally get that, I felt the same way at first... but in 2021 or 2022 your video’s gonna be about options, I’m making that prediction. Cus you Gotta Level UP!
@NicoleByron 3 жыл бұрын
Think Money lol im day trading them so we’ll see. Hoping by 2021/22 I’ll be way more into the real estate game. Who knows. We shall seeee
@veselkadogcoats692 2 жыл бұрын
Jesus stop the stupid long winded intro I clicked out
@ThinkMoneyBenny 2 жыл бұрын
Cool
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