How To Trade A Covered Put
Channel: NavigationTrading
Date: 23/05/2017

How To Trade A Covered Put

The Covered Put is one of the strategies that we trade at NavigationTrading.

The Covered Put is a great strategy to trade in periods of High Implied Volatility. Since they require a relatively large amount of capital, they should typically be traded in larger accounts.

The Covered Put strategy must be traded in a Margin Account.

In this video, we will walk you through how to:
1.  Evaluate Implied Volatility
2.  Find an underlying symbol to trade
3.  Locate the correct strikes to trade
4.  Analyze the trade
5.  Place the trade

Here’s the metrics we look for when trading a Covered Put:
-  Market Assumption – Bearish
-  Implied Volatility – High
-  Trade Setup: Sell (Short) 100 Shares of Stock; Sell One 30 Delta 
   Put
-  Profit Target – 25-50%
-  Downside risk – None
-  Upside risk – Undefined
-  Probability of Profit – Over 55%
-  Time Decay (Theta) POSITIVELY impacts this position

Want the full step-by-step details on how to trade options? Click below to learn more.

https://www.navigationtrading.com/trading-options-for-income/

Have you tried our 2 week trial of NavigationALERTS? Click below to learn more.

https://www.navigationtrading.com/navigationalerts-2weektrial/

Also, don’t forget to join us every Monday morning at 8:25am CST, where we broadcast our “Trade of the Week” LIVE from our Facebook page and YouTube channel

At NavigationTrading we consider it a privilege to be your guide on this exciting journey.

Happy Trading!

The NavigationTrading Team
https://www.navigationtrading.com
info@navigationtrading.com