In this first post, I present my favorite option strategy – Selling Put Options. Yes, I am talking about options on a value investing website. Please read on and I am sure you will find it interesting. I will follow up with more posts on other option strategies for a value investor if there is an interest.
Often times when I like a company and want to purchase some shares, the stock is trading a bit higher than where I would like to buy. I could do several things here
1) Just wait patiently till the price comes in my buy range.
2) Place a limit order to buy the shares at a lower price.
3) Buy some shares now and add more as the price moves down OR
4) Sell puts on the shares at a lower strike price.
Read the rest of the article on GuruFocus.