In this video, you’ll learn how to sell put options.

When dealing with options, most people will buy a call or a put. When you buy an option, you’re hoping the value will go up.

The truth is, most options don’t go up. In fact, they go down. And you can lose your entire investment when buying an option.

So then the question is: How do we get around this problem?

Simple, sell options…but…sell put options. Selling put options is similar to shorting a stock. You’re hoping the value of the put option goes down.

Let’s say we sell the INTC Feb 45 Put. In this case, we’ll collect $0.45 on this put. That’s equal to $45.

$45 is deposited immediately into your account. So you get $45 for selling to open a position in this option. This $45 is called premium. This is the amount we collect immediately when we sell a put option.

If the stock stays above your strike, which is $45, and the option continues to go down, you’ll be able to keep your $45.

In fact, the option could even expire worthless. In which case, you don’t have to worry about buying back your option and paying a commission. You just collect the premium and that’s it.

So how does this work exactly? The key component is to find a quality stock. That’s a stock that stays above your strike price and has a high premium.

Premium, when we’re selling an option, is the $0.45 or the $45.

If you sold one option contract at $0.60, you’d collect $60. If you found an option for $1.00, that’s $100. So you immediately collect $100.

However, it can be very time consuming to find these quality options with high premium. That’s where Steady Option Income comes into to help you.

What we do is vet out stocks for high quality.

We look at parameters such as their trend, is the company making money, is the stock in any kind of distressed situation. Meaning, is it on the verge of bankruptcy.

There’s a number of things we go through to make sure the stock we’re choosing is not too volatile. Mainly because we don’t want it to swing below the strike. We are wanting the stock to stay above our strike and maybe even keep going up.

In which case, we have a great chance of collecting the full value of premium.

If you’d like to see how it works, just sign up here: https://www.steadyoptionincome.com/steady-option-income-subscription/.