FINRA Exam Tips and Career Advice - Achievable Podcast · Achievable

Covered puts deep dive (FINRA SIE, Series 4, 7, 9, 65, 66)

June 12, 2024·14 min·1 clip
Why a 'covered put' isn't low-risk and how test writers exploit this tricky name.
Brandon Rith dives into the covered put strategy, explaining its mechanics, risks, and calculations for FINRA exams. He uses a scenario with short stock and a short put to demonstrate market sentiment, maximum gain/loss, and breakeven analysis, emphasizing practical tools like the T-chart method.

As heard by us

A clear, plain-spoken payoff guide to a covered put for a relatively flat market.

The lesson frames a covered put as short shares of stock paired with a short put, then walks through a worked scenario that suits an investor expecting the stock to stay relatively flat in the near term.

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Why you'd press play

You want the covered put payoff to stop feeling like a trapdoor.

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