A wash sale rule happens if you sell a security for a loss, then purchase the same security, or nearly identical, within 30 days before or after the sale date. It applies to most securities you’re probably familiar with, ETFs, stocks, bonds, and options. You should call your broker to address your concerns about the wash-sale rule and if you’ll be affected (if you sell for a loss and want to buy the same security (or nearly identical for options).
Sure, I can explain selling puts. Now, keep in mind, you should understand that selling puts outright is dangerous, and the risk can be more than expected. For me personally, if I want to sell puts, I utilize a bull put spread, which hedges my position.
If you naked sell put, it’s a bet that the stock will not get to that level, if you want to collect premium. When you sell a put, it’s actually a bullish bet because you want the stock to run higher to collect premium. If the stock drops, you will see losses. If the options expire in the money, you would have to purchase shares at the strike price at which you sold the puts.
APPL sell put spread 115/110 – now 1.94 – 1.98 – you will not take eg 1.96?
Please explain the wash sale rule. When trading options is the wash sale a factor?
A wash sale rule happens if you sell a security for a loss, then purchase the same security, or nearly identical, within 30 days before or after the sale date. It applies to most securities you’re probably familiar with, ETFs, stocks, bonds, and options. You should call your broker to address your concerns about the wash-sale rule and if you’ll be affected (if you sell for a loss and want to buy the same security (or nearly identical for options).
I an subscriber to Monday Movers and when do the picks come out to buy on Friday and sell on Monday.
Hi Patricia. The pics generally come out Friday afternoon. Monday sales depend on the stock move.
Can you explain selling puts?
Sure, I can explain selling puts. Now, keep in mind, you should understand that selling puts outright is dangerous, and the risk can be more than expected. For me personally, if I want to sell puts, I utilize a bull put spread, which hedges my position.
If you naked sell put, it’s a bet that the stock will not get to that level, if you want to collect premium. When you sell a put, it’s actually a bullish bet because you want the stock to run higher to collect premium. If the stock drops, you will see losses. If the options expire in the money, you would have to purchase shares at the strike price at which you sold the puts.
Donald Whidbey Island Wash. ready to learn
I was able to view this clearly unlike the last one which was very blurry and I gave up on thank you.