Submitted by mannahosanna t3_z727cl in wallstreetbets
Whirly315 t1_iy8vnib wrote
Reply to comment by Working-Ad-5683 in Thankful for $GEO by mannahosanna
no i mean on the company robinhood itself lol sorry i should have specified. ticker HOOD. people shit on them but their balance sheet is actually pretty strong and they were one of the first stocks to get crushed down to a fair valuation. i had my friend im teaching sell the $8 put on HOOD for the jan 20 expiration yesterday and he got like $55 for it… that’s a pretty great return on only $800 of capital
Working-Ad-5683 t1_iy97tr7 wrote
Don’t you need to have like 100 shares to sell puts though
Whirly315 t1_iya2yt2 wrote
you need to own 100 shares to sell a covered call. selling a put is the other side, you need enough cash to cover buying 100 shares if the stock drops below your strike price.
i really like adam from InTheMoney to explain things. here is his video on the subject https://youtu.be/r_rKof8IdfU
Working-Ad-5683 t1_iyaj9ln wrote
Thank you
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