Using a Put Selling Strategy: A Step-By-Step Lesson On Selling Options
Jun 29th, 2009 | By Lee Lowell | Category: Stock Market InvestingLet’s say you’ve been interested in buying Microsoft stock and you feel $20 is a good price to pick up some shares. It currently trades at $23.50 per share, so you’ll need it to fall in price a bit before getting filled on the trade. Most stock traders would just put in a “limit buy” order to buy the stock if/when Microsoft falls down to $20 per share. But there’s no guarantee that Microsoft will ever fall to $20 per share, and there’s no one paying this stock trader upfront for his time while they wait to buy Microsoft (NASDAQ:MSFT) at $20…