Why Sell a Put (Unlimited Risk) When You Could Buy a Call?
2 min readWe will go on the screen and the risk analysis to show you the advantages and disadvantages of each option spread. By understanding the risks and defining your risk will determine which option spread you should place.
With selling a PUT you have unlimited risk, but a limited profit potential. When BUYING a CALL you have unlimited profit potential, but unfortunately, the theta or time decay works against you.
If you are new to trading or investing – it is wise to evaluate the profit pictures so that you can see your risk in a visual format.
#sellput #unlimitedrisk #buycall #optiondecay #optionvalue #optiontheta
Posted at: https://tradersfly.com/blog/why-sell-a-put-when-you-could-buy-a-call/
???? GET MY FREEBIES
???? SUBMIT A VOICE QUESTION
???? START HERE: FOR NEW TRADERS
???? START HERE: OPTION TRADERS
???? MY CHARTING TOOLS + BROKERS
???? MY COMPUTER EQUIPMENT
???? GET THE NEWSLETTER
???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/
???? STOCK TRADING COURSES
???? STOCK TRADING BOOKS:
? GET PRIVATE COACHING
???? WEBSITES:
???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/
? SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/
???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/
???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.
Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!
