Make $100 a DAY with SELL PUT on UPRO by Swing Trading!

Описание: Make $100 a DAY with SELL PUT options on Leveraged ETF on S & P 500 - UPRO by Swing Trading!

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#shortstrading

Check the below video to see how to open a SELL PUT option trade:    • Make $225 with SELL PUT on UPRO by Swing T...  

This video shows how to close the SELL PUT option trade opened in the above video.

Quick FAQs related to the video:

How is the CREDIT/DEBIT calculated?
Each options contract is for 100 stocks and the options premium shows per stock. So, a CREDIT of $2.25 is $225 for the one options contract.

How is the COLLATERAL amount calculated?
The option strike price of the stock times 100 is the COLLATERAL. In this video, for the strike price of $125 the COLLATERAL amount the brokerage has to hold for placing the SELL PUT trade is $12500.

How did this trade make $100 CREDIT?
Opening the SELL PUT gave $225 CREDIT. To close this trade, BUY PUT with an amount of $125 which is a DEBIT. So, $225 CREDIT on Open - $125 DEBIT on Close = $100.

What are the other ways this could have been handled?
1. Wait for SELL PUT Option to expire on Friday Sep 17th to retain $225 CREDIT - Real Passive Income!
2. Set the BUY PUT for a lesser option premium like $50 and wait more.

Why close early before option expiration?
1. By opening the SELL PUT option trade on UPRO, $12500 is locked as COLLATERAL amount by the brokerage. Closing the SELL PUT releases the COLLATERAL amount to be applied for the next trade.
2. No one can time the market! On expiration by end of day on Sep 17th, if UPRO stock value traded below the break even price of $122.75 (Strike price of $125 - Option premium of $2.25) there is not much value from the option premium CREDIT.

Get Smart:

1. Options Trading - https://www.investopedia.com/articles...
2. Cash Secured Put Strategy - https://www.optionseducation.org/stra...
3. Leveraged ETFs - https://www.investopedia.com/terms/l/...
4. UPRO - https://www.proshares.com/funds/upro....

I am NOT a licensed financial professional. This video is intended for educational purposes only and not financial advice.