Sell cash covered put option. Checkout CBOE and search sell put to buy stock.Which options strategies exists that utilize the covered positions schema? (like covered call)
Thanks
Which options strategies exists that utilize the covered positions schema? (like covered call)
Thanks
The covered call, covered ratio spread, covered strangle, and some interesting plays with collars are all methods that interest me a lot.The question is very general, so I have to provide a general response. Check out our Option Trading education center. https://www.lightspeed.com/trading-education-center/
I have mixed feeling about being short stock though, I rather play some options if I want to be bearish, it may be just because I've always heard bad things about shorting stocksThere is also the bastard brother of covered calls, called covered puts. You are short the stock and sold the puts. It is basically being negative on a stock with a protective put premium. Your profits are also limited, but when you are not sure about the timing of a stock's going down (like Tesla) and you don't expect a big drop anyway it is a pretty good strategy.