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 use a very simple Apple put option example just to help you kind of walk through how you can understand how to sell put options in a particular stock. I like to use Apple because it’s a really popular ticker for everyone. Everyone knows Apple, they’re familiar with it and it gets a lot of attention. We’re just going to do this at the time that I’m actually recording this. And so, right now, ironically enough, Apple is trading pretty much at $200. It was just downgraded today, so it’s trading a little bit lower on the day, about 2.5% or so, but it’s trading right around $200 a share. When we look at a put option, obviously, what we’re trying to do is sell a put option, hope that the stock does not go below our strike price or our blended breakeven price and look to collect all that premium or as much of that premium as possible before expiration. Now, at the time I’m recording this, it looks like A