Updated: Apr 25
Have you always wanted to purchase a particular stock but the price was always too high or have you seen Stocks run up and you missed your entry? I have plenty of times and it sucks! I do not like missing entries but what can you do? at this point you have two choices you can purchase the stock at the inflated price and chase it or you can just wait it out and hope it comes back at a certain point.
What I’ve learned is a very simple method of essentially getting paid to own stocks. Are you looking to purchase Facebook at $170? Well the stock is trading at $180 dollars?
Here is my strategy, a very simple one.
Example: $FB current price $180
Your desired entry is $170.
What to do: Start to sell a naked put at $170 strike price every single week, until your our option goes in the money. Most likely you will be paid around $1-2 dollars credit every week (which comes out to $100-$200 dollars), if the stock continues to go higher you can keep selling the $170 Put or move it higher.
When Facebook reaches $170 or under you will finally own the shares that you wanted, at this point you will have been PAID to own the stock! Bam! That’s it... it’s that simple, get paid to own a stock that you’ve always wanted. I would recommend only doing this with stocks that you WANT to own.
Hope this helps, if anyone wants to share this on Stocktwits or Twitter please do!
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