Sep 29, 2016
This week we are going to look at a cash-secured put, which you can find on page 48 of the Options Playbook. You can always find it online at OptionsPlabyook.com, or in an Amazon Kindle version. Today Brian discusses:
- OPEC decided to cut oil production, so oil prices and stocks spiked
- Looking at Marathon Oil, MRO
- Where is it trading today?
- How to put on a cash-secured put in MRO?
- Why is the timing right to do an oil play?
- Selecting the expiration
- Remember that you want to be put the stock
- Where are you willing to buy the stock? That's how you pick your strike
- Where is IV right now?
- What will it cost?
- What is the maximum cost if you're put the stock?
- What happens if you're wrong on the strike?
- How to get more upside? Sell a put to pay for a bull call spread
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