What are the benefits of protective puts?
Learn how protective puts can benefit you and save your retirement portfolio. Then, kick off your journey to financial independence by eliminating credit card debt with this free 7-Step Credit Card Debt Slasher.
How can protective puts add 2% to 4% growth to your portfolio
Is today’s roller-coaster market keeping you up at night? Have you considered using put options to protect your portfolio?
Nate Thomas, aka Trader Nate, is the creator of A Trader’s Education, a newsletter that helps people trade growth stocks and sell covered calls to beat the stock market.
On this episode of Queer Money®, Nate is back to discuss put options and share his cash-secured put strategy for protecting yourself from downside losses. Nate explains the pros and cons of engaging in cash-secured puts, describing why it’s a relatively low-risk strategy and how it works best in a down or sideways market.
Listen in to understand why you need a basic understanding of where a stock price moves to trade effectively, and learn how protective puts can save your retirement portfolio!
Listen to get more insight on trading protective puts
Topics covered on trading protective puts
- How a put option gives you the right to sell stock shares at a certain price
- Nate’s cash-secured put strategy (and why you need cash to do it)
- Why Nate suggests getting comfortable with call options before you try cash-secured puts
- Who functions as the buyer and seller in a cash-secured put
- The pros and cons of engaging in the cash-secured put strategy
- How to request options trading ability from your broker
- How the terms ‘strike price’ and ‘breakeven point’ apply to a cash-secured put
- Using a cash-secured put to offset losses in a down or sideways market
- Why Nate recommends trading cash-secured puts in your retirement account
- How covered calls and protective puts can add an extra 2% to 4% growth to your portfolio
- Why covered calls and protective puts are relatively low risk
- Why you need a basic understanding of where a stock price moves to trade effectively
Connect with Nate
- A Trader’s Education on Substack
- TraderNateHere on Twitter
Resources on trading protective puts
Connect with David and John
- Debt Free Guys on Facebook
- Debt Free Guys on Twitter
- Debt Free Guys on Youtube
- Queer Money Facebook Group
- Queer Money on Instagram
- Subscribe on Apple Podcasts
- Email [email protected]
Watch this week’s episode on trading protective puts
Previous 3 Podcast Episodes
- Why You Don’t Need a Budget
- How Physical and Mental Health Affect Financial Health
- How to Find and Ask for Remote Work from Home
We’re David and John Auten-Schneider, the Debt Free Guys (www.debtfreeguys.com) and hosts of the Queer Money® podcast. We help queer people (and allies) live fabulously not fabulously broke by helping them 1) pay off credit card debt, 2) become part- or full-time entrepreneurs and 3) save and invest for retirement.