The 1 reason cash secured puts will NEVER do well in the long term.
Selling a put is a bullish strategy, right? YES.
So if you sell a put cash secured with a $100 strike, that means you will have $100 x 100 =$10,000.00 in cash sitting there doing nothing.
Why on earth would you wanna have all that cash not working and deployed. You wouldn't...
Even if you were right and the stock went up (selling puts means you are bullish) the amount you woulda made just by buying shares instead of the cash is like to be way more in the long run.
The fix? Portfolio secured puts. There is no "cash drag" There is no "margin interest" There is no "leaving money on the table" There is no "getting wiped out in a crash"
I recently dropped a YouTube video covering this. Watch it HERE:
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The 1 reason cash secured puts will NEVER do well in the long term.
Selling a put is a bullish strategy, right?
YES.
So if you sell a put cash secured with a $100 strike, that means you will have $100 x 100 =$10,000.00 in cash sitting there doing nothing.
Why on earth would you wanna have all that cash not working and deployed.
You wouldn't...
Even if you were right and the stock went up (selling puts means you are bullish) the amount you woulda made just by buying shares instead of the cash is like to be way more in the long run.
The fix?
Portfolio secured puts.
There is no "cash drag"
There is no "margin interest"
There is no "leaving money on the table"
There is no "getting wiped out in a crash"
I recently dropped a YouTube video covering this.
Watch it HERE: