Buying the Blood – Using Put Sales to Make Money in Options Trading

ostrich Buying the Blood   Using Put Sales to Make Money in Options TradingThe markets look like death right now.

And that’s O.K.

Volatility breeds opportunity, especially if you are an options trader.

If you have been underinvested during the past year, this may be a great opportunity for you.

Into this blood, I’m a huge fan of selling OTM puts in solid large cap names, many of which offer wonderful dividends. These plays are longer term and are great for IRA players or covered call investors.

These are not recommendations to buy or sell, and you can lose your shirt if you go on margin. But this makes for a good starting point if you are willing to do your own research.

Here’s my list:

$KO

Current Price: 67.32

Trade: Sell Sep 65 Put @1.05

Yield: 1.64%

$JNJ

Current Price: 62.63

Trade: Sell Sep 60 Put @0.92

Yield: 1.56%

$XOM

Current Price: 75.8

Trade: Sell Sep 72.5 Put @1.7

Yield: 2.40%

$CLF

Current Price: 81.47

Trade: Sell Sep 70 Put @1.56

Yield: 2.28%

$POT

Current Price: 53.42

Trade: Sell Sep 50 Put @1.77

Yield: 3.67%

$BHI

Current Price: 68.2

Trade: Sell Sep 60 Put @1.27

Yield: 2.16%

$VMW

Current Price: 91.63

Trade: Sell Sep 80 Put @1.85

Yield: 2.37%

$IBM

Current Price: 174.63

Trade: Sell Sep 160 Put @2.7

Yield: 1.66%

$CMI

Current Price: 97.29

Trade: Sell Sep 85 Put @2.25

Yield: 2.72%


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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