Put Writing Strategies

What Are Some Popular Put Writing Strategies for Extra Weekly or Monthly Cash Flow Generation?

Here are some popular put writing strategies that options traders utilize:  

Cash Secured Puts – One of the most basic strategies, it involves writing cash secured puts on stocks you’re bullish on or wouldn’t mind owning. If assigned, you own the shares at a discounted price.  

Put Credit Spreads – A limited risk strategy where near-term puts are sold and further expiration puts are purchased. You keep the difference if the stock stays above the short put.  

OZ5 Naked Options System

 

Put Diagonal Spreads – Similar to calendars but writing puts that expire sooner than the longer-dated protective puts purchased below. Profits from time decay.  

Put Backspreads – A more conservative strategy than naked puts, it sets a short put above a long put acting as downside protection if breached.  

Put Butterflies – Three puts are written at varying strike prices with the short put price in the middle to profit in a defined range. Low cost to enter.  

Condor Spreads – Four puts are utilized in this strategy – short puts above and below longer expiration covering puts. Wide breakeven range for lower risk.  

GS8 Options Weekly Paychecks Naked Options System

 

Naked Puts – For the most experienced traders, writing puts without the cost of hedging can generate significant income if your analysis is correct on stocks staying put or rebounding before expiration. Tight management is paramount though.  

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