When used correctly, selling puts is an incredibly powerful strategy that gives everyday investors the chance to generate income, reinvest in other opportunities, or to purchase equities at below-market prices. But if used indiscriminately, this strategy can easily wipe out a portfolio. Today, we discuss how to do it the right way.
In this inaugural issue of The Trading Club, we have selected nine stocks that fall right in our sweet spot of the mispriced options zone: they have low fundamental risks at their current valuation, but an higher option prices that we don’t believe is warranted, creating a lucrative trading opportunity.
In today’s Daily Journal, Porter explains a variety of topics, including the best strategies for making huge gains with little risk… and the big secret that he will strive to pass down to his children.