The Simplest Options Trade That I Do

Options can certainly be intimidating at first, and what many folks need is a way to get started with options and get confidence by winning their first few trades out of the gate. There’s probably no simpler, easier-to-win trade than the basic “Naked Put” trade, where you are selling an option to create an obligation to buy the stock should it drop to the strike that you sold by expiration day. You need to want to own that stock and are “OK” with being assigned….however if the stock continues higher to expiration day, then you are released from your obligation and you can do the same thing all over again the next cycle. 

 

About the Author Brian Keith

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