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Anyone here sell puts on stocks? Instead of buying into the market, at these inflated prices, and trying to time it, then perhaps sell puts instead. Collect t
by blackrock 6y ago
Anyone here sell puts on stocks?
Instead of buying into the market, at these inflated prices, and trying to time it, then perhaps sell puts instead.
Collect the premiums as cash in your pockets. And if it the stock falls, then you get to buy it at a much cheaper price.
- harambae 6y agoI do the opposite and buy OTM puts recently, but as a short term strategy because I think tech is overvalued (and there are particular software companies I'm betting against at their current valuations). I'm essentially just hedging, though, because I still have so much in stocks. Hoping the puts partially offset the hit I'd take from a serious crash and perfectly willing to lose minor premium in the meantime.
- jeffreyrogers 6y agoI do this with cash-secured puts for the same reason as you described.
- blackrock 6y agoHow’s your batting average? What delta do you get in at? And what time frame (weekly, monthly)? I play it for the theta decay. And I stick to weekly options.