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you can always sell puts, that way you take a bullish position but it doesn't cost you any cash

 

for example you think save would be a good stock at around 15... you sell the september 15 puts for $1.10... worst case scenario is you have to buy it next month for $13.90/share ($15 strike price minus the $1.10 in your pocket).

 

rinse and repeat and keep cranking out 7%/month without having to spend any cash

I was always confused by that stuff. So if I sold 10 put contracts at the numbers you assigned, id be on the hook for 1k shares at 13.90 if it dropped below 15?

If it stays above the strike of 15 I’d just collect the premium in 10 contracts Which is $1.10 x ? Only way you get crushed is it if it crashes to 10 and you get assigned at 13.90, correct?

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I was always confused by that stuff. So if I sold 10 put contracts at the numbers you assigned, id be on the hook for 1k shares at 13.90 if it dropped below 15?

If it stays above the strike of 15 I’d just collect the premium in 10 contracts Which is $1.10 x ? Only way you get crushed is it if it crashes to 10 and you get assigned at 13.90, correct?

 

correct, you get forced to buy at 15 but you already cashed in that 1.10

 

each contract is for 100 shares... a call option is the right to buy 100 shares at that price... a put option is the right to sell 100 shares at that price

 

so by selling the put options you are taking a conservatively bullish position, you only have to buy it at a better price... and then for example if it goes down to 14 and you buy it, you can always sell call options against your position to make more free $$$

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if you want something that will double in 6 months, i say RYI... that's a $15 stock trading under 7

 

the only other stock on my radar that i feel comfortable will double is MUX

 

everything else has already jumped so freaking much

thanks I’ll take a shot with both
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