Simple rule that fixes 90% of options mistakes:


Only sell puts on companies you'd be HAPPY to marry.
Not date. Marry.
Companies with a real moat.
Pricing power.
A durable edge.
Earnings going up.
Great valuation level to start.
Because when you sell a put, you might get assigned. You might own it.
If you only sell puts on companies you'd gladly hold for a decade, getting assigned is just fine.
FYI, I have been selling long duration portfolio secured puts for over a decade and I have been assigned only 4 times.
This is the power of doing it the right way.
Also, every time I was assigned, I made money.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments