How to Trade Bull Puts for Income
If you're looking to generate income from your investment portfolio, one strategy you may consider is trading bull put spreads.
It's an advanced option trading strategy......
A bull put spread involves buying a put option on a stock while also selling a put option with a lower strike price. The difference between the two strike prices is known as the spread.
The key to successful bull put trading is finding the right stocks.
You want to find stocks that are in a strong uptrend and have good support at the current level.
Once you've found a few stocks that fit this criteria, you can start to look at the different put options available and see which ones offer the best opportunity for profit.
When entering into a bull put spread, you're essentially betting that the stock will continue to rise.
If the stock does indeed continue to rise, you'll make a profit on the difference between the two strike prices. If the stock starts to fall, you'll still make a profit as long as it doesn't fall below the lower strike price.
One thing to keep in mind when trading bull put spreads is that you're also exposing yourself to some risk. If the stock were to suddenly plunge, you could end up losing money on the trade. As such, it's important to use stop-loss orders when entering into these trades.
Stop-loss orders will help limit your losses if the stock does start to fall. By placing a stop-loss order at a level below the lower strike price, you can protect yourself from incurring too much of a loss.
Bull put spreads can be an effective way to generate income from your investment portfolio. However, it's important to remember that there is some risk involved. As such, you should only enter into these trades if you're comfortable with the risks.
Jason Bond Wall St Bookie Bull Put Alerts
Jason Bond's Wall St Bookie system is an example of how you can trade bull put spreads for income. The system gives you the ability to enter and exit trades quickly and with minimal risk.
Jason sends out daily buy/sell alerts and a watch list to help you find and make the best bull put spread trades.
If you're looking for a way to generate income from your investment portfolio, trading bull put spreads may be worth considering.