| |  | | Wednesday, November 24, 2021 | Premium Selling: Taking the Other Side of the Options Coin
By Tom Gentile | Hey there, Power Profit Traders!
My next LIVE trading session starts at 9:30 a.m. ET right here, and it's an important one for all you stock and option buyers who've been toying with the idea of selling premium.
Depending on your level of experience, you may or may not know that call and put options can be used in a variety of ways to fit any outlook; they aren't just for buying as straight-up bullish or bearish bets.
Of course, the most common way traders use options is the simple "vanilla" purchase of calls on a stock expected to go higher, or puts on a stock expected to go lower...
But what if I told you that script could be flipped? That you could take the other side of the coin, so to speak?
Specifically, you can also SELL OPTIONS TO OPEN -- taking the other side of those "vanilla" trades out of the gate.
I know it's difficult for rookies to wrap their heads around being able to sell something intangible that they didn't buy in the first place, but lucky for you, you've got ME to show you the ropes!
So today I want to dive into what it means to be a put seller -- the logistics, how I hunt potential trades, and why you shouldn't be intimidated to add this strategy to your trading repertoire.
(And when you're done reading and bookmarking this how-to, hop in the room at 9:30 a.m. ET to watch me touch on this LIVE.)
Click here to continue reading today's Power Profit Trades newsletter.
Tom Gentile
America's #1 Pattern Trader
| Tom's Toolbox | Today's Watchlist is based on the Morning Report's Expensive IV tool. This data is updated after the closing bell each session, and compares current implied volatility (IV) against a set of near-the-money options over the last year. Expensive IV means the current IV is at the high end of this 52-week range, meaning option premiums are running hotter than normal -- a ripe atmosphere for selling to open options.
The Morning Report tools from the Tom Gentile Suite app are free to Power Profit Traders - click here for instructions on how to use and download.
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