🟢The BIGGEST hack with selling portfolio secured puts is that you can technically make an unlimited ROI.
(not kidding)
Roll with me on this one, it will BLOW YOUR MIND!
So selling puts is a bullish strategy. That's why I would never want to sell "cash secured puts", I sell "portfolios secured puts." (cash sits there and does nothing, but portfolio secured works for you being invested)
Ok. So when I sell portfolio secured puts and collect say $20k for example, I take that cash flow and buy $20k in shares of the company I am bullish on. (same one I am selling puts on)
I usually sell 1 year contracts (much safer and easier)
Usually if done correctly, about 6 months in to the 12 month contract, you will be around 75% profit on the trade. I buy back the contract for around $5k.
But I still have 15k in shares in the company I am bullish on. Yet the trade is closed out 100%
I can hold those shares forever and ride them to technically infinity!
Another reason why portfolio secured puts with longer duration contracts win.
Cash secured sucks. Your cash sits there and does nothing.
Short duration sucks & is gambling.
So many retail investors get this so wrong...
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🟢The BIGGEST hack with selling portfolio secured puts is that you can technically make an unlimited ROI.
(not kidding)
Roll with me on this one, it will BLOW YOUR MIND!
So selling puts is a bullish strategy.
That's why I would never want to sell "cash secured puts", I sell "portfolios secured puts."
(cash sits there and does nothing, but portfolio secured works for you being invested)
Ok.
So when I sell portfolio secured puts and collect say $20k for example, I take that cash flow and buy $20k in shares of the company I am bullish on. (same one I am selling puts on)
I usually sell 1 year contracts (much safer and easier)
Usually if done correctly, about 6 months in to the 12 month contract, you will be around 75% profit on the trade.
I buy back the contract for around $5k.
But I still have 15k in shares in the company I am bullish on.
Yet the trade is closed out 100%
I can hold those shares forever and ride them to technically infinity!
Another reason why portfolio secured puts with longer duration contracts win.
Cash secured sucks.
Your cash sits there and does nothing.
Short duration sucks & is gambling.
So many retail investors get this so wrong...