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Selling cash covered puts is a powerful strategy with 3 advantages: income generation, margin of safety, and potential stock acquisition at a discount. The max loss is limited to the strike price difference. Only use by those who understand the risks and willing to own the stock
Writing cash covered puts is a powerful stock acquisition strategy that has several advantages over buying stocks outright. One of the main benefits is the ability to generate income from the premiums received for selling the put option. When selling a cash covered put, an