The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “How do you write a put option?” Writing or selling a put option contract is actually pretty easy. The first thing you have to do is you have to make sure that you’re with a broker that allows for this to be done in your account. Typically, that means that you have to be doing it in a margin account. You can’t sell a naked put option or write a naked put option in an IRA or a retirement account. But if you are in a regular margin trading account and you wanted to sell a put option, all you simply need to do is find the expiration period that you want to sell the option in and choose the strike price of the put option that you want to sell and after that, it’s basically very simple. You create the order to actually sell that option contract and collect the additional premium that comes in from selling that contract. In exchange, you’re going to be putting up what’s called margi