Sell Put

 

  • When? - The market is expected to go slightly high, but not go down.
  • Strategy? - Sell a put option of the strike above which you expect the market to go
  • Advantages? - Profitable even if we are slightly wrong (Market moves up and slightly down)
  • Disadvantages? - Unlimited loss 
  • Max Profit? - Premium Received
  • Max Loss? - Unlimited
  • Break-even point? - Strike - Premium received


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