This is a hands-on guide to making money with options. Writing naked puts is an option strategy for two types of investor: (1) Those who want to buy stock at below (current) market prices. If the stock is not available at that low price, then the investor earns a cash profit as a consolation; and (2) The shorter-term bullish trader who wants to earn a profit even when the stock price does not rally.

Part I contains background information that provides a better understanding of why writing put options is an attractive strategy for anyone with a bullish market bias. NOTE: Selling naked puts involves downside risk —similar risk associated with owning stock. However, put sellers always lose less money when markets decline.

Part II covers trading ideas: how to think about a trade, how to prepare for a trade, how to enter and exit the trade, how to repair a trade (manage risk) – if and when it becomes necessary, and how to prepare for expiration (the day the options expire).