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If you are new to selling puts and bull put spreads then you might consider following the steps below.
1) Register at Writingputs.com This will start you off receiving our members update to get you oriented to our service.
2) Contact you broker and let them know you are interested in writing puts and bull put spreads. If you encounter any problems with this step then you may want to contact an options broker. Visit www.cboe.com to see a list of options brokers or try (Davrey Financial). They are experienced in option strategies. What you may not know is that an options broker is different than a stock broker. Most stock brokers are not licensed for options and are not allowed by S.E.C. regulations to process option trades for their clients. Because of this you might need to open up an account just for option trading. If you need to open up another account you will want to let your new options broker know that you want to write puts and trade credit spreads.
If you are opening up a new account you will also need to check the box labeled speculation. This box will be on your new account form you receive from your broker. It will be under the heading of "Investment Objective.' If you place an "x" in any of the boxes marked growth or preservation of capital then your broker might not let you write puts. For those of you using your current broker to write puts and trade bull put spreads you might be required to update your options application form.
3) Fund your account The S.E.C. will require you to deposit a minimum of $2000 to open your options account to trade spreads and most brokers would like to see you deposit a minimum of $10,000 for writing puts.
4) Head to the library or Amazon.com to pick up some books on options trading. We will do our best to explain our trades and our thought process behind each trade but it never hurts to educate yourself even more in the trading process.
5) Read the basic rules page. It is a good idea to refresh your working knowledge of the basic rules for writing puts. (click here for the basic rules page).
5) Trade your account. You can use the updates and confirmations you receive as one of our members to help you in placing your trades or you can trade variations of our professional traders trades. The more you learn the easier it will be to branch out.
6) It is our hope that as your account grows and your learning curve increases that you will be able to use the stock market to enrich the lives of your family and friends, maybe even retire early!
Send questions to questions@writingputs.com