10 thoughts on “Stock Options Trading – Renting Your Shares for Regular Income”

  1. dude, once the share price goes above that strike price, you can immediately buy the shares (at the price the call allows you to) and then sell them at the higher price-for a profit

  2. After more thought i think the best extension to this strategy would be if you get exercised and forced to sell your shares, just write naked puts below the current stock price until you get exercised.

    This way you get paid a premium and you also get to buy the shares cheaper than the current stock price when you do evenutally get exercised. Then just repeat the process.

  3. I’m still trying to get my head around this.. but what do you do if you have to sell the shares when the share meets the strike price for the call? Just buy more shares + sell another call while keeping the original put?

  4. If the shares rise as you describe and you’re called out of your position, you still have the put options as you describe. They’re effectively “worthless” as long as the price of the stock is above the strike price of the put. The put only becames valuable once the share price falls below the put.

  5. Hi Jules if the shares rises above the strike price and the contract is exercised what happens to the Bought Put can u just sell it back to the market and get some of the money back that you paid for it

  6. Very informative.Thanks for broadcasting it on th web. More power Jules to your educational broadcast. I really want to learn this so I can work at home and spend more time wtih my family. Keep sharing your knowledge.God bless your work.

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