EP 114: The Correct Way To Use Options – 3 Strategies To Use Right Now


This is one of the top strategies we teach at Power Trades University.

You can use options to literally negotiate with the market. 

As an example… Apple is trading at $100 a share, but you’re only willing to buy it at $95 a share. 

With the covered put method, you can negotiate with someone that currently owns the stock. You will tell them you want to buy it at $95. They will even pay you for your offer. 

If the price never drops to $95, you don’t have to buy it and you get to keep the money they paid. If it does drop to $95, then you’ll be able to purchase at a discounted price

Now, this isn’t something you can do for just any stock, there is a right and a wrong way to do it. You want to make sure you’re choosing the right stock at the right price in order for a covered put to be beneficial for you.



Image and article originally from thebrownreport.com. Read the original article here.