Retail investor: When a put I sold is winning I close it fast. The losers I just hold & hope.


Me: So you bank tiny wins quick... but let the bad ones sit & bleed?
Retail investor: I mean, I don't want to lock in a loss.
Me: That's backwards. You're capping every win small & letting every loss run wild.
Retail investor: ...so I've got it flipped?
Me: When a put goes against me on a great company, I've got a plan: roll it, take the shares, or buy it back. I don't just freeze & hope.
Retail investor: So hoping isn't a strategy?
Me: Hope is what you do when you sold puts on companies you didn't actually want. I only sell them on ones I'd be glad to own.
Sell portfolio secured puts on companies you'd be glad to own.
Trim the weeds.
Water the flowers.
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