Part 2/10:
At its core, selling a put option involves entering an agreement that obligates you to purchase a specific stock at a predetermined price (the strike price) before a certain expiration date. The key benefit is that you receive an upfront premium for taking on this obligation, effectively getting paid to potentially buy a stock you’re interested in at a price you control.
Lee Lel underscores that to generate wealth over time, investors need to participate in the stock market, either through long positions or indexes. Selling put options offers a straightforward and lucrative way for smaller accounts to get started, as it allows traders to define their purchase price and collect premiums regularly.