Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
just that I believe majority of options expire worthless

A great reason for selling puts or calls. The option seller harvests the premium and wants the options to expire worthless.

The poster was suggesting selling puts near with a strike near your price targets. If the stock stays higher than the strike, you win. If the stock is lower than the strike, you pick up shares at your target price (strike) less the premium received.

Of course, you are on the hook to buy those shares at the strike price. If the stock drops way below your target, it isn’t the most fun of situations.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.