In this video, I show you a step by step guide on how to sell put options in Interactive Brokers, from finding options, selling options and what you can do after selling. Enjoy!
► Get your free Apple stock from Moomoo:
► Free Tiger Brokers stock vouchers:
► Interactive Brokers for best commission rates:
► Keep Bitcoin in BlockFI for high interest rate
► Keep Bitcoin in Ledger securely
► Invest with StashAway:
► Binance.com to buy in USD
► Sign up to Syfe and get 6 months FREE with referral code: KELVIN
► Discord chat:
0:00 – Intro
0:59 – How To Find Options
When selling put options, one of the most important thing is to only sell options on stocks which you are willing to own. Because when you sell a put option long enough, eventually you will be assigned 100 of the stock. I’ll be showing you how to sell put options on PLTR. I feel this stock has a good chance of going up. Its very volatile, which causes the options to have higher premiums. And the stock is cheap enough for us to sell 1 options.
2:08 – IBKR Option UI
Try to sell options with 30-45 days to expiry, and options at 0.3 delta. Many people found that these settings will give you a good risk to reward ratio. Take note that prices in Interactive Brokers are delayed by 15 minutes.
6:15 – How To Sell Options
8:36 – Where To See After Selling
9:47 – What Happens After Selling Options
After selling a few things could happen. If the option is in the money,the options buyer will exercise the option, and you will be assigned 100 stocks of the company. You will get your stocks 1 day after the expiry date.
If the option is out of the money, you could choose to buy back to close the option. Even if you do not earn the full amount, you will still get to lock in your profits.
Another way is to roll your options, which is basically just closing your current option, then resell at a later date of expiry. The Interactive Brokers has the roll options feature in the app.