Explore Your Options | AUG 2007
Explore Your Options by Tom Gentile
Explore Your Options by Tom Gentile SELLING TO BUY I’ve heard the term “selling to buy” when discussing put options. I am not sure what it means and when to apply it in my trading. If you are selling to buy, you are selling or writing options and are willing to buy the underlying security. The most common way of doing this is to sell puts on stocks you want to own. For example, if I want to buy a stock for $50 a share and the stock is currently trading at $50.50, I can sell put options with a strike price of 50. Depending on how much time is left until expiration, I might get a few hundred dollars per contract for writing the put.
by Tom Gentile
Technical Analysis of STOCKS & COMMODITIES
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