1. Lets take a quick look at selling Puts, it’s an interesting and simple strategy that has the potential to give you a great yield. However, it can also be dangerous if you don’t understand how to manage your risk. 
2. I’m going to make this very brief. When you sell (short) a Put you are betting the price won’t drop lower than your strike price. In the example below I sold the 44k Put, and the buyer paid me around $1,200 for that contract.
3. If #BTC isn’t below 44k by the at the time this Option expires, I will simply keep the $1,200. The eagle eyed among you might have noticed the catch. If #BTC does go below 44k you start losing money rather quickly.
4. For our example let’s say I did own 1 #BTC and I sold 1 Put, furthermore let’s say in 11 days (this contracts expiry) #BTC is trading at $44,001. If that were to be the case, I would have made $1,200 in a about 2 weeks. Not bad.
5. This is not financial advice, DYOR. Like I said, you have large risk to the downside so you need to know what you are doing.
If you want to learn more about selling Puts though, this is a good place to start 👇.
If you want to learn more about selling Puts though, this is a good place to start 👇.
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