Beginner Options Strategy: Short Put – Get Paid to Wait for a Better Price | #OptionsHandbook EP032
If you’re bullish on a stock but hesitate because the price feels too high, don’t just sit and watch—how can you position yourself?
For beginners, the Short Put strategy is a powerful way to turn that hesitation into opportunity.
📘 The Options Handbook clearly explains how Sell Put works—
▶ What Is a Sell Put? 🤔
The "Short Put" means selling a put option—also called a "Sell Put" strategy. It's a way of getting paid to potentially buy a stock at your preferred price.
When you sell a put, you're essentially saying: "I'm willing to buy this stock—but only if it gets cheaper."
To make that promise, you receive a premium upfront. If the stock stays high? You keep the cash. If it drops, you get to buy it at a bargain.
▶ How Does Profit/Loss Work? 📊
Let's say Pear Inc. is trading at $100, and you'd love to own it at $95. You sell a put with a $95 strike that expires in a month and collect a premium.
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If the stock drops to $95 or below, you're assigned. You buy 100 shares at $95—but since you already received the premium, your effective cost is even lower.
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If the stock stays above $95, nothing happens. You don't buy the stock. You keep the premium as pure income.
▶ The Essence of Sell Put ✨
It's a simple deal: earn income now, or get the stock later, at a discount. In other words, you’re “collecting rent” while waiting—why it’s often called the strategy that makes time your friend.
🎁 The Options Handbook also includes a P/L chart for Short Put, plus many more beginner-friendly and advanced strategies—now available in the Tiger Coin Center! 🐯
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- zippiee·08-25Great strategyLikeReport
