Selling Put Options

If stocks can be compared to five-speed automobiles, stock options are F-16 fighter jets. In order to qualify for an options account, you have to state your level of experience, candidly reveal your level of liquidity, and pretty much accept that it’s your fault if you go bankrupt.
There is a reason for this. You [...]

Beginning options traders often make costly mistakes due to either a lack of knowledge or misinformation about the basic parameters of options and their exercise. Examples of common errors include being surprised that one is unable to close an index option position on the Friday before expiration, or being surprised by an unhedged option exercise [...]

The majority of casual investors buy and sell stocks.  If they are bearish on a stock, some will even short-sell stock.  But relatively few investors fully understand and take advantage of trading options. 
 
With stocks, you own a small piece of a company.  However, with options, you purchase the right to buy or [...]