Selling Options Lets You…

There are a lot of benefits to selling options in the stock market. Some of the things selling options lets you do are. 1. Make Money In A Confused MarketnnWhen stocks are volatile and have no clue which direction they want to go selling options lets you make a profit. Instead of trying to predict what will happen, you can simply sell options and make money by predicting where a stock will likely not go. nThis isn’t that hard in volatile markets considering stocks can stay range bound for a long time. 2. Get Into Strong StocksnnYou can also use it to get into strong long term plays by selling puts. For Example, say you really like stock XYZ at $20. You believe that the stock is a good long term play and will eventually be worth much more than $20. But you might want to get it at a better price, or you might believe that the market is going to have a correction. If that is the case you might want to consider selling the $15 put for $3. This way you would make $3 up front and if the stock falls to $15 or lower within a certain time frame you would be nobligated to buy it at $15. If you think the stock is a great deal and worth much more than n$15 this method could be like getting paid to get into a great deal. 3. Making a Monthly Income Off StocksnnIf you are already in a stock you can sell calls off of your stocks to create a monthly income. For example if you are already in stock XYZ which is trading at $20 you could sell the $25 call for $2 and walk away with the premium. Of course if the stock goes above $25 you would have to sell it at $25. So selling covered calls is a strategy best done when stocks are not trending higher. For more on option selling visit http://www.stocks-simplified.com/option_selling.html For more on covered calls visit http://www.stocks-simplified.com/covered_calls.html