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I (Mr.) first got to know about Options Trading from Mrs.. The concepts is not difficult to grasp but I need to practice regularly to be able to understand them. There are a many options trading strategies. I found Selling Cash Secured Put to be the easiest to understand and start with, especially with an bare bone trading account.

 

Key reasons why I (Mr.) sell Cash-Secured Puts option contract?

  • The money is earned upfront (within your trading account balance) as soon as your orders are filled
  • Tech stocks are growth stocks. Selling Cash-Secured Puts is best suited to deploy when you think there is a bull case for the tech company
  • In a bear-ish scenario, you get to own the stock at a price you like (lower than the time you first sell the put option contract)

 

What metrics to review to decide which Sell PUT option contract to trade?

  1. Shortlist the companies you do not mind owning
  2. Further screen stocks for
    1. Affordable price
    2. Trading volume
    3. Implied volatility percentage
    4. Bid-Ask spread
    5. Strike Price spread
    6. Number of Expiration Cycles
  3. Review Delta/ Probability of In-The-Money

 

How to Sell Cash Secured PUT Options Trading on TD Ameritrade – ThinkorSwim Web Platform?

Step 1. Login to https://trade.thinkorswim.com.sg/

Step 2. Search for Ticker

Step 3. Look under Options Chain

Step 4. Review Option Contract metric like Implied Volatility, Volume, Delta, Theta, Vega

Step 5. Select “Bid” price under the PUT contract to trade

Step 6. Edit the number of contracts, price to trade

Step 7. Review the cost and submit

 

How to Sell Cash Secured PUT Options Trading on TD Ameritrade – ThinkorSwim Mobile App?

Step 1. tbc

 

Awesome List of Sell Cash Secured PUT Option Contracts Trading

Websites

    • https://learninginvestmentwithjasoncai.com/
    • https://www.optionsplaybook.com/

YouTube Videos

    • https://www.youtube.com/watch?v=8X7alFOJeUM