Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners: Financial Freedom, #208
    Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners: Financial Freedom, #208
    Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners: Financial Freedom, #208
    Ebook81 pages55 minutes

    Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners: Financial Freedom, #208

    By Joshua King

    ()

    Read preview

    About this ebook

    So, you want to trade options? Be careful; there are many traps on the battlefield we call the options market.

     

    An excellent place to start your options trading journey is by selling covered calls and cash-secured puts.

     

    However, if you are not careful, you can easily acquire stocks with a high-cost basis. This will put you in a position where you can't trade until the stock price rises.

     

    To avoid this trap, you must use technical analysis to acquire shares at the low point in their pricing cycle. 

     

    With a bit of planning, you can position yourself to make a good amount of passive income. The returns can be incredible. Good Luck!

     

    LanguageEnglish
    PublisherJoshua King
    Release dateNov 8, 2023
    ISBN9798223423027
    Covered Calls vs. Cash-Secured Puts: The Best Strategy for Beginners: Financial Freedom, #208

    Read more from Joshua King

    Related to Covered Calls vs. Cash-Secured Puts

    Titles in the series (100)

    View More
    View More

    Related ebooks

    Investments & Securities For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Near Enough Is Good Enough

      Oct 1, 2020

      It seems that currently trying to find a “good deal” is as easy as sourcing toilet paper was back just before the April lockdown… Everyone is looking for it and worried it’s going to run out. Property markets are tight and FOMO (fear of missing out)

      3 min read

    • Article

      3 Common Money Myths You Probably Believe

      Apr 3, 2018

      If you want to build your wealth, it's never been easier to learn how to do that, thanks to the Internet. Anyone with an Internet connection can find the answers to just about any question in a matter of seconds. You can teach yourself almost anythin

      4 min read

    • Article

      5 Strategies for Retirement Immunity Despite Coronavirus Crisis

      Mar 30, 2020

      Less than a decade ago, I used to drive from Philadelphia up to northern New Jersey for client meetings. I would print my directions off of MapQuest and do my best to stay on course. I would inevitably get lost or end up on a detour somewhere aroun

      5 min read

    • Article

      Wealthy & wise

      Apr 30, 2023

      Wealthy & wise
      7 min read

    • Article

      Why Fear Is As Good As Greed

      Jul 28, 2022

      Why Fear Is As Good As Greed
      4 min read

    • Article

      Ask Paul

      Jul 1, 2020

      Ask Paul
      9 min read

    • Article

      Investors: Don't Let FOMO Put Your Retirement at Risk

      Feb 27, 2018

      Given the current state of the markets, you're probably wondering if you should be making some changes to your investment portfolio. Maybe you've got the urge to sell as stocks fall. Or maybe you want to do the opposite: Take advantage of big market

      3 min read

    • Article

      Moving On From Savings

      Oct 19, 2021

      Moving On From Savings
      4 min read

    • Article

      How To Be An Investment Boss

      Apr 14, 2021

      For me, the fear of losing $50 is far greater than the joy of winning $50. It probably explains why I don’t gamble. Why am I so afraid of losing money? Well, it all comes down to what behavioural economists call loss aversion, when losses loom larger

      4 min read

    • Article

      5 Things To Do In A Bear Market

      Feb 20, 2018

      Bear markets, technically, are a 20% drop in the stock market, but who wants to wait that long to find out it's a bear? Bear markets, corrections and volatility all look pretty much the same at the beginning. When the market is down 5%, how do you

      4 min read

    • Article

      7 Secrets of Highly Successful Investors

      Oct 2, 2019

      In investing, it's as important to practice good habits as it is to avoid bad ones, and the stakes have rarely been higher. The longest bull market on record is in its 11th year, volatility is sky-high, the economy is uncertain and market sentiment i

      12 min read

    • Article

      Why You Should Stick With Stocks

      Apr 4, 2018

      Like fishing in a well-stocked pond, investing has been pretty easy in recent years. Imagine that at the end of October 2007, the month the bull market peaked, you put all of the money you had to invest into a fund that tracks Standard & Poor's 500-s

      5 min read

    • Article

      How To Make The Most Of A Down Market

      Oct 3, 2019

      You may never learn to love bear markets, but you can learn how to make them more bearable. A bear market rips your portfolio for at least a 20% loss. (Smaller downturns of at least 10%, even the 19.8% price drop in the fourth quarter of 2018, are co

      3 min read

    • Article

      MONEY Talks

      Jan 20, 2020

      MONEY Talks
      3 min read

    • Article

      What’s Your ‘Money Type’? Knowing It Could Help You Avoid a Financial Blunder

      Sep 3, 2020

      As a wealth adviser, I’ve witnessed the various ways people react to financial stress. While I’m sometimes surprised at an individual’s response, I remind myself that people have deeply ingrained beliefs and patterns about money. There is a large bod

      3 min read

    • Article

      What to Do (and Not Do) When the Market Drops

      Dec 12, 2018

      It's been a long time since we ended a year with U.S. stock market being down. However, the longest bull market in U.S. history, which started on March 9, 2009, could finally be coming to an end. If you have watched or read any amount of news recent

      3 min read

    • Article

      Focus on Protecting Your Nest Egg Once You're Retired

      Jun 26, 2019

      If you're like most investors, you've focused on making money for most of your financial life. But once you're retired or close to retirement, I believe you need to shift gears, to put protection ahead of growth in order to make your savings last. I

      3 min read

    • Article

      Stop Being Afraid of a Down Market

      Sep 2, 2022

      Nobody likes a down stock market – or do they? Almost every conversation I have had with clients this year included some amount of fear over where the markets are and where they are headed. The concerns range from losing a few more percentage points

      1 min read

    • Article

      Are Premium Bonds For You?

      Aug 17, 2021

      Are Premium Bonds For You?
      3 min read

    • Article

      5 Time-Tested Tactics in Bear Markets

      Aug 24, 2020

      As COVID-19 continues to run its course, it gives us another chance to learn from the past and prepare for the future. Yes, that could refer to a lot of things, but let’s assume it is the stock market. March was terrifying if you were an investor. No

      3 min read

    • Article

      Offsetting New Tax

      May 27, 2021

      As an investor, we are taught to be counter-cyclical and buy when nobody is buying. What nobody mentions is that it can be scary in the moment. One investor compared it with feeling like he was playing a game of chicken vs an onrushing train … and I

      3 min read

    • Article

      Are You Gambling or Investing? Here’s How to Tell

      Mar 2, 2021

      Investing in the stock market over many decades offers most people an incredible opportunity to build wealth. Does that surprise you? If so, you’re not alone. Over the course of my career as a financial planner, I’ve found that many people look at th

      4 min read

    • Article

      Invest in you! SHARES MADE EASY

      Mar 19, 2023

      Invest in you! SHARES MADE EASY
      6 min read

    • Article

      Could Your Cash Savings Hurt You?

      Aug 14, 2018

      It's hard to imagine having too much cash. But it's actually possible to do. If you're decades away from retirement and you literally have more money than you know what to do with, it probably doesn't matter if it's all sitting in cash somewhere. Mos

      4 min read

    • Article

      Rewind To Look Ahead

      Sep 10, 2021

      through my career of more than two decades in investments, I have learned several lessons. Here are a few. You can’t invest successfully over time unless you have a well-defined philosophy and process. The key is finding a process that works and stic

      3 min read

    • Article

      What's Your Investment Return? Setting Expectations for Your Stock and Bond Portfolio

      Jan 29, 2019

      Do you remember the course you took back in high school, or maybe your freshman year of college, that taught you about how to manage your personal finances and invest your money? If you're thinking something along the lines of, No, I never took a cl

      4 min read

    • Article

      Here’s How To Avoid Disaster When Things Go Bust…

      Nov 1, 2019

      a few months back, I wrote about trading and how hard 2019 has been for many traders. Since then, a number of readers contacted me about their own experiences, of which pretty much all resulted in losing money so far this year. I was fortunate that w

      2 min read

    Related categories

    Reviews for Covered Calls vs. Cash-Secured Puts

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Covered Calls vs. Cash-Secured Puts - Joshua King

      Table of Contents

      MILITARY FAMILY INVESTING | Joshua King | Home of the Free PDF

      Covered Calls vs. Cash-Secured Puts

      All Right Reserved Military Family Investing | 01  Covered Calls vs. Cash-Secured Puts

      02  Financial Freedom Road Trip #2: Options Trading

      03  Stock Market vs. Bond Market vs. Options Market

      04  The Options Playbook

      05  Selling Covered Calls for Passive Income

      06  Selling Cash-Secured Puts for Passive Income

      07  Mean Reversion Trading

      08  The Bear Market is Your Friend

      09  Love, Passion, & Freedom: Welcome to Passive Income

      10  Treasury Bonds vs. Options Trading

      Try Something New -Free PDF Download

      Sign up for Joshua King's Mailing List

      Also By Joshua King

      MILITARY FAMILY INVESTING

      Joshua King

      Home of the Free PDF

      www.militaryfamilyinvesting.com

      Covered Calls vs. Cash-Secured Puts

      The Best Strategy for Beginners

      01  Covered Calls vs. Cash-Secured Puts

      02  Financial Freedom Road Trip #2: Options Trading

      03  Stock Market vs. Bond Market vs. Options Market

      04  The Options Playbook

      05  Selling Covered Calls for Passive Income

      06  Selling Cash-Secured Puts for Passive Income

      07  Mean Reversion Trading

      08  The Bear Market is Your Friend

      09  Love, Passion, & Freedom: Welcome to Passive Income

      10  Treasury Bonds vs. Options Trading

      Free PDF Download

      PDF of the Month: Don’t Gamble with Retirement 11 (Free 410-Page PDF)

      Free PDF Downloads: Download FREE PDF LIST here

      Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)

      Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)

      Investing: How We Plan to Retire on Dividends 4 (Free 139-Page PDF)

      Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)

      Real Estate: Financial Independence through Real Estate 4 (Free 112-Page PDF)

      Business: Retire Rich, Retire Comfortable with a Business 4 (Free 149-Page PDF)

      Latest DGWR: Don’t Gamble with Retirement 11 (Free 410-Page PDF)

      Everything!: The Biggest Book on Passive Income Ever 3! (book)(Web Edition)(Art Edition)

      Writer’s Comparison: M1 Macbook Air vs. GalaxyBook3 Pro 360

      Read My Books for Free: Free Kindle Books Schedule

      Book Design: Design Tips on YouTube

      Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)

      Book Reviews: 505 Takeaways from 101 Books (pdf)

      Writing: The Publishing Chronicles (Part 1, Part 2, Part 3, Part 4, Part 5)

      Best REIT- Fundrise: Fundrise vs. US Treasuries (Join Fundrise)

      Follow us: On our Facebook Page and Join our Facebook Group

      Support the Channel on Cash App: $Kingmarine1981

      For more detailed analysis, join my Youtube: MFI YouTube Channel

      ––––––––

      PDF of the Month: Don’t Gamble with Retirement 11 (Free 410-Page PDF)

      Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article.

      All Right Reserved Military Family Investing

      01  Covered Calls vs. Cash-Secured Puts

      So you want to trade options, huh? Welcome to this magical and dangerous world that most try to avoid at all stops.

      The key to trading options successfully is having a clear income goal, defined expectations, and a rock-solid plan to avoid being greedy. Greed is the number one way to lose lots of money in the options market.

      Where should you start? There are tons of complex strategies (read "The Options Playbook") for trading options, but I wouldn’t recommend those off the bat.

      From Dirt to Dividends 2

      Instead, let’s focus on the basics: selling covered calls and selling cash-secured puts. Both techniques avoid using leverage; however, you can still find yourself underwater without the proper training.

      The key to utilizing both of these strategies successfully is keeping your cost basis as low as possible. If you focus on your cost basis, you’ll have much better results than trying to make as much money as possible.

      What is your cost basis? Your cost basis is the average amount of money you spend to acquire your stocks. If you bought 100 shares of AT&T (T) for $1,500, your cost basis is $15 per share.

      Retire by Age 38 in 10 Difficult Steps

      Your goal is always to keep your cost basis as low as possible. When you trade cash-secured puts, you won’t have any shares but will have the cash to purchase them. So, let’s start our journey with selling cash-secured puts.

      Using technical analysis to sell

      Enjoying the preview?
      Page 1 of 1