Trading Stock Options FAQ

Have questions about options? The Trading Stock Options FAQ page is for you. Scroll down to see questions already discussed or ask your own.

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Questions and answers - regardless of their original source - may be edited for grammar, keyword relevance, and, especially in the case of questions submitted directly to the Great Option Trading Strategies site, if I think of a better or wittier answer in the future.

The Questions About Options

Questions About Option Premium and Option Income

When Do You Get Premium When You Write an Option?

Interest and Options - Do I Get Charged Interest for Writing Puts?

Questions About Covered Calls and Naked Puts

Writing Naked Puts vs Covered Calls - Is There Really a Difference?

Advantages of Writing Naked Puts over Covered Calls

Writing Cash Secured Puts on Stocks You Don't Want to Own

Selling Covered Calls - How Far Out Should You Go?

Turning a Naked Put Into a Covered Put After the Put Has Gone In the Money?

Repairing Naked Puts - Why Stick with a Losing Trade?

Questions About Hedging With Options and Adjusting Option Positions

Hedging Naked Puts

Closing Options Early (Naked Puts/Covered Calls)

Options and Stop Losses

Adjusting a LEAPS Position

Questions About Dividends

Is it a Good Idea to Reinvest Dividends?

Do Reinvested Dividends Lower My Cost Basis?

Other Questions About Options

Selling Covered Puts (What Do You Gain and Lose?)

Options Advisory Service

High Yield Safe Investments

How Much Option Greeks Do You Need to Know?

free exclusive value investing with options report

HOME: Trading Stock Options FAQ


Warren Buffett Zero Cost Basis Portfolio Current Equity Holdings:

KO - 125 shares
KMI - 100 shares
BP - 100 shares
MCD - 30 shares
JNJ - 25 shares
GIS - 25 shares
PAYX - 25 shares

Open Market Purchase Price: $20,071.83

Less Booked Option Income: $16,341.71

Tot. Discount: 81.42%
Adj. Div. Yield: 19.59%