"But Brandon, what if the stock tanks after you sell the portfolio secured put?"


I have three outs. Most people don't know about a single one:
1. Roll the contract DOWN and OUT & buy myself another year or two for earnings to grow. (stocks follow earnings)
2. Take the shares on a company I already wanted to own cheaper.
3. Buy the contract back — often still keeping most of my premium.
A losing options trade only wipes you out if you have no plan.
I always have a plan. That's why I sleep fine through 40% drops.
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