503 Put Options Explained_ How They Work and Their Risks

Selling put options is often presented as a way to generate recurring income by collecting premiums. But collecting a premium does not mean earning a guaranteed income. To understand how this instrument works, we can compare a put seller to an insurance company: the company collects a premium but, in return, takes on an obligation if an adverse event occurs. In this episode from the Unger Academy Summit Live 2026 "Wall Street Champions", you will learn how buying and selling put options work, what the premium and strike price represent, and which risks are involved in selling naked puts. Through charts and practical examples, you will also see what may happen when the underlying asset falls below the strike price and the seller is assigned. Happy listening!