I introduced the topic with this article and will launch "watchlist trades" for paid subs still in June.
The money required to enter into the transaction depends on various factors.
Assuming you have cash account and use uncovered puts (you don't have short position of the underlying stocks) then usually the amount covering the purchase of the underlying stocks (if assigned) needs to be available.
E.g. you sell put at strike price $50, then you should have $5000 available (as 1 contract is 100 stocks). So, could be quite sizeable amount required. Margin account has more complex calculation.
So generally, yes you'd need to set aside relatively significant amount of money until the expiration date.
That is the best but most simple strategy out there, keep it up
Interesting.
Do you share these option trades with your paid subs?
What about the minimum quantity of stocks purchase?
Don't It requires a significant amount of money?
I introduced the topic with this article and will launch "watchlist trades" for paid subs still in June.
The money required to enter into the transaction depends on various factors.
Assuming you have cash account and use uncovered puts (you don't have short position of the underlying stocks) then usually the amount covering the purchase of the underlying stocks (if assigned) needs to be available.
E.g. you sell put at strike price $50, then you should have $5000 available (as 1 contract is 100 stocks). So, could be quite sizeable amount required. Margin account has more complex calculation.
So generally, yes you'd need to set aside relatively significant amount of money until the expiration date.