Are you ready for the secrets of a reliable, income-generating strategy in stock options?
Then you are ready to learn about selling naked puts -- a conservative strategy that allows investors to earn premium on bullish and neutral stocks and acquire stock at a discount.
You may have heard rumors that trading naked puts is risky, but these rumors are outdated; the reality is that naked puts have the same risk-reward tolerance as covered calls, one of the most conservative of strategies. The naked put position allows an investor to take advantage of a neutral to bullish market sentiment without actually buying shares of stock.
This practical guidebook, rich with illustrations and theoretical and real life examples will help you:
• Learn general and specific rules for researching naked put trades.
• Determine which stocks are most suitable for the naked put strategy.
• Learn focused criteria to help select the best trade for your goals.
• Gain management techniques and exit strategies for any situation.
Start reading to discover how selling naked puts can generate income in your portfolio right now.
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Table of Contents:
Table of Contents
Chapter 1 - An Introduction to Options and the
Naked Put Strategy 1
Chapter 2 - Theory Behind the Naked Put Trade 37
Chapter 3 - Selecting the Right Stocks 77
Chapter 4 - Finding the “Write” Naked Put Trade 95
Chapter 5 - Placing the Trade 127
Chapter 6 - Monitoring and Managing Your Naked
Put Trade 143
Chapter 7 - Review and Real World Examples 177
About the Authors 207
Trading Resource Guide 211
About The Authors:
During a 30-year career at Hewlett-Packard, Ernie Zerenner forged a trail of achievement. He developed four patents, delivered six well-received papers, received an international award for his invention of the Fused Silica Column, and had an impressive list of industry firsts, including the first microprocessor-driven instrument in the analytical industry.
During his tenure, Zerenner continued his lifelong fascination with the stock market, building a successful portfolio. When retirement loomed, Zerenner felt it was necessary to switch his investing philosophy from seeking capital gains to creating income from assets owned. So he turned to covered calls, an options trading strategy designed to generate consistent income. Using a calculator and the financial pages, it took 8 to 10 hours to find good opportunities. In an attempt to cut that time frame, Zerenner and a colleague designed a program to scan the entire market and find the best-covered calls. The time required to do the job dropped from eight hours to eight minutes. It was breakthrough technology that earned a patent and was the basis for a web site called PowerOpt.com that not only supports Zerenner covered call investments, it supports thousands of subscriber/investors in, at last count, 57 countries all over the world.
PowerOpt.com is still the largest subscription program of Power Financial Group, the trading company Zerenner established in 1997. Today, he continues to innovate and seek ways to help investors grow through options trading.
Michael Chupka grew up in northern Delaware, his father had a Ph.D. in chemistry and his mother was a registered nurse. During his high school years, Chupka was deeply involved with various service organizations, mainly Key Club, and devoted much of his free-time to helping others. He also worked part-time as manager of a local store between his obligations as an officer of Key Club and captain of the cross country team. Chupka attended the University of Missouri-Rolla. He majored in geology, micropaleontology and English literature. Five years and tens-of-thousands of PowerOptions customers later, Chupka has established himself as head of the PowerOptions support team and a recognized options strategy educator in the industry. Chupka has written dozens of educational articles for PowerOptions, but this is Chupka's first book co-authored with Ernie Zerenner, President of Power Financial Group, Inc.
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