Let’s talk about a neutral-to-bullish option strategy that puts money in your pocket right off the bat.
The strategy typically returns in the neighborhood of 10% to 20% (on margin) in less than two months while the underlying stock remains flat, rises, or even falls a bit. What’s more, if the stock declines by more than you expect, you can buy the shares at a discount to the current price.
Though you should naturally be skeptical of such claims, there is such a strategy — put selling, an approach that can be attractive for both options and stock traders. For options traders, it can provide consistent profits, while stock traders can use put selling as a way to get paid while waiting for a stock to pull back to an attractive purchase price.
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