I've heard selling put options is risky
That's what a lot of people say. Here is my response:
Selling put options can be risky or they can be conservative, depends on how you want to trade them.
We sell put options very conservatively, and it works very well for us.
The main premise - if you want to get paid to buy a stock you like, at a much lower level than where it currently trades, then yes, put-option selling can be great for you.
You have all the control. You decide which stock you potentially want to buy, you decide what price you potentially want to buy it for (strike price), and you decide the length of time (expiration date).
If you follow those guidelines, it can be a great money-maker.
The risk? The risk is that the stock can fall below your purchase price. But that’s the same risk any stockholder has.
Read our free Put-Selling Basics guide to see how it all works.