This Simple Option Trade Can Return 29% At Annualized Rate.

Autor: McMASTER, GAVIN (AUTHOR)
Předmět:
Zdroj: Investors Business Daily. 3/7/2024, pN.PAG-N.PAG. 1p.
Abstrakt: This article from Investors Business Daily discusses a trading strategy called a cash secured put, which involves selling put options on a stock while setting aside enough cash to buy the stock if necessary. The article provides an example using Fifth Third Bancorp stock, explaining that investors could sell a put option with a strike price of $35 and receive a premium of $1.20. If the stock stays above $35 at expiration, the put expires worthless and the investor keeps the premium, resulting in a 3.55% return on capital at risk in 43 days. However, if the stock falls below $35, the investor would be required to buy 100 shares at $35, resulting in a reduced cost for the stock. The article emphasizes that options trading is risky and investors should do their own research and consult a financial advisor before making any investment decisions. [Extracted from the article]
Databáze: Regional Business News
Nepřihlášeným uživatelům se plný text nezobrazuje