Trading Stock Options FAQ

Have questions about options? The Trading Stock Options FAQ page is for you. Scroll down to see questions already discussed or ask your own.

The questions come from a number of different sources, including questions specifically submitted on this site's Contact Page. If you have a question or comments of your own, feel free to submit those via the form on the Contact Page.

I will make every effort to respond to you personally in a reasonable time frame via email, and if I deem my response at least somewhat intelligible, I may also include the exchange here. This is an anonymous process - no contact or personally identifiable information pertaining to you will ever be posted here.

Questions and answers - regardless of their original source - may be edited for grammar, keyword relevance, and, especially in the case of questions submitted directly to the Great Option Trading Strategies site, if I think of a better or wittier answer in the future.



The Questions About Options


Questions About Option Premium and Option Income

When Do You Get Premium When You Write an Option?

Interest and Options - Do I Get Charged Interest for Writing Puts?



Questions About Covered Calls and Naked Puts

Writing Naked Puts vs Covered Calls - Is There Really a Difference?

Advantages of Writing Naked Puts over Covered Calls

Writing Cash Secured Puts on Stocks You Don't Want to Own

Selling Covered Calls - How Far Out Should You Go?

Turning a Naked Put Into a Covered Put After the Put Has Gone In the Money?

Repairing Naked Puts - Why Stick with a Losing Trade?



Questions About Hedging With Options and Adjusting Option Positions

Hedging Naked Puts

Closing Options Early (Naked Puts/Covered Calls)

Options and Stop Losses

Adjusting a LEAPS Position



Questions About Dividends

Is it a Good Idea to Reinvest Dividends?

Do Reinvested Dividends Lower My Cost Basis?



Other Questions About Options

Selling Covered Puts (What Do You Gain and Lose?)

Options Advisory Service

High Yield Safe Investments

How Much Option Greeks Do You Need to Know?











HOME: Trading Stock Options FAQ

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key option trading resources graphic

>> The Complete Guide to Selling Puts (Best Put Selling Resource on the Web)



>> Constructing Multiple Lines of Defense Into Your Put Selling Trades (How to Safely Sell Options for High Yield Income in Any Market Environment)



Option Trading and Duration Series

Part 1 >> Best Durations When Buying or Selling Options (Updated Article)

Part 2 >> The Sweet Spot Expiration Date When Selling Options

Part 3 >> Pros and Cons of Selling Weekly Options



>> Comprehensive Guide to Selling Puts on Margin



Selling Puts and Earnings Series

>> Why Bear Markets Don't Matter When You Own a Great Business (Updated Article)

Part 1 >> Selling Puts Into Earnings

Part 2 >> How to Use Earnings to Manage and Repair a Short Put Trade

Part 3 >> Selling Puts and the Earnings Calendar (Weird but Important Tip)



Mastering the Psychology of the Stock Market Series

Part 1 >> Myth of Efficient Market Hypothesis

Part 2 >> Myth of Smart Money

Part 3 >> Psychology of Secular Bull and Bear Markets

Part 4 >> How to Know When a Stock Bubble is About to Pop