Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to
remove any comments we feel do not benefit other readers. If you have a personal question about your subscription or need technical help, please
contact our customer service team. If you have any success stories to share with our analysts, they’re always happy
to hear them. Note that we may use your kind words in our promotional materials. Thank you.
Vince
I put 20,000 into my account and sold 3 puts not realizing that I only have enough money for maybe one more trade. I did apply for a margin account. My question is how do I make 40 trades 500 a trade when they want to hold the whole amount of buying the 100 shares?
Ari Charney
Hi Vince,
In general, we try to focus on stocks trading under $50 per share so that those selling cash-secured puts can do at least four trades per quarter. Depending on the price of the underlying stock and the time remaining until expiration, you may actually be able to do more than that on average.
Beyond that, it’s best for those who are new to this to start out slowly by only doing cash-secured trades for a while before using margin.
Stock Talk
Vince
I put 20,000 into my account and sold 3 puts not realizing that I only have enough money for maybe one more trade. I did apply for a margin account. My question is how do I make 40 trades 500 a trade when they want to hold the whole amount of buying the 100 shares?
Ari Charney
Hi Vince,
In general, we try to focus on stocks trading under $50 per share so that those selling cash-secured puts can do at least four trades per quarter. Depending on the price of the underlying stock and the time remaining until expiration, you may actually be able to do more than that on average.
Beyond that, it’s best for those who are new to this to start out slowly by only doing cash-secured trades for a while before using margin.
Ari
You must be logged in to post to Stock Talk OR create an account
You must be logged in to post to Stock Talk OR create an account
Add New Comments
You must be logged in to post to Stock Talk OR create an account