Because most of the time, puts are overpriced as investors are willing to pay extra for “Crash Protection”.
But most of the things investors worry about never come to pass, and by the time they do, the puts are worthless anyway due to time decay.
Like insurance companies, put sellers aim to manage risk and generate income.
Insurance companies carefully assess various factors such as risk exposure, probabilities of events, and actuarial data to price their policies accurately.
Similarly, put sellers analyze market conditions, implied volatility, and strike prices to make informed decisions about which options to sell and at what premium.
Understanding the similarities between these two concepts can help investors appreciate the value of selling puts as part of their investment strategies.
You will learn all this and more in my upcoming webinar on August 15th – Mastering Cash Secured Puts.
you will learn to:
✅ Identify lucrative trade opportunities
✅ Harness the power of implied volatility
✅ Set precise profit targets & stop losses
✅ Understand option delta for strategic advantage
✅ Observe live examples for hands-on experience
Reserve you spot below:
https://us02web.zoom.us/webinar/register/WN_X6HAygdDQR6-1-t0njBXbw#/registration
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
