Think I'll stick with simple Long Calls and Long Puts. I don't know why brokerages consider them to be "high risk". Wht? Those are the simplest and BEST options I know. They are a leveraged instrument which is GREAT.....AND the BEST part is I know my max risk up front....no surprises down the road. 👍 💯
You can sell at any strike. You might have those two mixed up. Remember we're talking about *selling* the puts. An OTM PUT is what you want. You want it to stay out of the money and expire out of the money. You then keep the premium. If you think the stock price is going up and staying in the up trend. You're taking on more risk if you sell a PUT in the money. You could still make money, but just more risky. Greg is advocating for the least risk possible. The problem (this is just me) I have with GS is it's so damn expensive. You need a large sum on hand to sell these puts ~$41k.
Think I'll stick with simple Long Calls and Long Puts. I don't know why brokerages consider them to be "high risk". Wht? Those are the simplest and BEST options I know. They are a leveraged instrument which is GREAT.....AND the BEST part is I know my max risk up front....no surprises down the road. 👍 💯
Is Prince doing ok Greg?
I do not understand how to sell a put with 20% OTM, I think you mean ITM!!!!. Can you please explain how is this possible????
You can sell at any strike. You might have those two mixed up. Remember we're talking about *selling* the puts. An OTM PUT is what you want. You want it to stay out of the money and expire out of the money. You then keep the premium. If you think the stock price is going up and staying in the up trend. You're taking on more risk if you sell a PUT in the money. You could still make money, but just more risky. Greg is advocating for the least risk possible. The problem (this is just me) I have with GS is it's so damn expensive. You need a large sum on hand to sell these puts ~$41k.
Wish I had the dough to sell GS PUTS. But there's always JPM which is a bit cheaper. Also remains in general uptrend.
maybe some xlf for some financial exposure maybe