Naked Puts: Power Strategies for Consistent Profits is your complete A-Z guide to naked puts, an income-generating stock options investment strategy. Selling naked puts is a conservative income-generating strategy that allows investors to earn premium on bullish and neutral stocks and is the best strategy to acquire stock at a discount. This is not a book for those who are interested in trading options as a speculative investment vehicle.
Both authors have had the benefit of talking to thousands of options investors over the last 10 years. This work includes the ideas, concepts, fortunes and misfortunes of investors’ experiences trading the naked put strategy. Its purpose is to help you succeed in the use of the naked put options strategy. It is a practical guidebook that is rich with illustrations, theoretical and real life examples.
Many books on options explain the techniques of this strategy, but then do not help in the management of the position once it is established. We have tried to go further and help you understand how to manage the position no matter what direction the stock might turn. It is very important to have a plan and know how to execute it, especially if the position goes against you. Sometimes your trades will not follow the path you hoped; therefore, you need an approach to address any eventuality. We have given you a complete approach to manage your positions as each expiration approaches.
As a result of reading this book you should expect to:
- Gain enhanced concepts of options.
- Learn general and specific rules for researching naked put trades.
- Determine which stocks are most suitable for the strategy.
- Learn techniques for analyzing and comparing potential trades.
- Learn focused criteria to help select the best trade for your goals.
- Discover steps on how to place the trade and common mistakes to avoid.
- Gain management techniques and exit strategies for any situation.
- An Introduction to Options and the Naked Put Strategy
- Theory Behind the Naked Put Trade
- Selecting the Right Stocks
- Finding the “Write” Naked Put Trad
- Placing the Trade
- Monitoring and Managing Your Naked Put Trade
- Review and Real World Examples