Selling cash secured puts on stocks can generate extra income by writing put options and setting aside cash to buy the stock if needed. This strategy is less bullish than owning the stock outright and is ideal for investors who think the stock will stay flat or rise slightly. For example, selling a put on PayPal ($PYPL) with a strike price of $45 could result in a 6.9% annualized return if the stock stays above $45. This strategy involves risks, so it’s essential to understand the potential outcomes before engaging in it. Additionally, consider using protective strategies like buying an out-of-the-money put to mitigate downside risk.

Read more at Barchart: How to Buy PYPL for a 29% Discount, or Achieve a 7% Annual Return