Retail investor: I'm running the wheel. Sell puts, get assigned, sell covered calls, repeat. It's an income machine.


Me: On what companies?
Retail investor: Whatever's got the juiciest premium that week.
Me: So you're selling puts on stuff you don't even want, just for the premium?
Retail investor: Well… yeah, that's kind of the point.
Me: So you get assigned garbage companies at garbage valuations, then sell calls that cap it the second it falls and gets cheap... you're babysitting trash for pennies?
Retail investor: When you put it that way it doesn't sound great.
Me: It's not. I only sell 1+ year portfolio secured puts on elite companies at great prices I'd be thrilled to own. If I get assigned, I just got a great business on sale. No wheel needed & the ROI will VERY likely smoke the wheel in the long run.
Don't run the wheel on garbage just to chase premium...
You'll stay busy and broke.
Sell portfolio secured puts on companies you actually want to own.
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