Writing Uncovered Put and Call Combinations

This book provides a complete education and implementation program for investors who seek an opportunity to achieve double- and even triple-digit annualized investment returns utilizing a strategy of writing uncovered puts and calls on individual stocks and Exchange Traded Funds (ETFs) without owning them. Only one margin amount is required to write both the puts and the calls. It is designed for investors who have experience with covered call writing on individual stocks or ETFs, and preferably also with put option writing, and who are prepared to take greater risk to obtain greater returns. Ways to mitigate risk are also discussed at length in the book.

For the option investor, the simultaneous writing of a put and a call option on the same security can provide a two-fold steady stream of cash income utilizing the same margin requirement if structured properly. It can also provide a chance to purchase desired shares of stock at a lower than current market price, if that is the objective of the investor. This book will give you the theoretical and practical tools necessary to develop and implement this investment discipline. Software templates using Excel are also provided for selecting option alternatives and calculating returns on investment. There is also a file containing a wealth of data on all of the exploding number of current U.S. ETFs, including information about which offer put and call options for writing.

For investors who have time to watch the market, who have the comfort that comes from knowledge and experience with other option writing strategies, and fully understand and are prepared to take additional investment risk, writing uncovered put and call option combinations offers the opportunity for very high returns at a time when the overall long-term outlook for investment returns, both equity and fixed income, seems to be below their historical averages.