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3 Naked Puts for $1,000 in Monthly Income

Trade options against SBUX, DLTR and ECPG for a cool grand

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Thanks to overwhelming positive response on my options articles — and particularly the ones where I aim to generate $1,000 in options premiums for expirations a month out (or two if the first one is too close) — I’m sending up another $1,000 flare.

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In short, it’s possible to generate a somewhat stable flow of income via the use of options. Particularly, I use covered calls or naked puts to achieve this, though today I want to focus solely on naked puts. It usually takes three or four trades to reach the $1,000 threshold.

Remember: If you use naked puts, and a stock gets put to you, you must have the money available to purchase that stock. Those with margin accounts can generally borrow against securities they hold if they are short on cash. But in general, you’re going to need a substantial brokerage account to execute some of these trades, and again, there is a significant amount of risk in these strategies, so act accordingly.

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