Retail investor: I only sell puts on high IV stocks. The premiums are way fatter.


Me: Why do you think the premium's so fat on those?
Retail investor: Because... they pay more?
Me: They pay more because they're more likely to crater. The market is literally pricing in the danger. Fat premium is a warning label. It's like ensuring a 16 year old for a car... more expensive cause it's more risky.
Retail investor: ...so the juicy premium is the risk talking?
Me: Every time. You're getting paid extra to hold a grenade. I sell portfolio secured puts on elite companies, even if the premium's smaller, because I'd actually be glad to own them.
Retail investor: So smaller premium on a great company beats fat premium on garbage?
Me: All day. The fat premium isn't free money like you think...
Don't chase fat premium without asking WHY it's fat...
High IV premium is the market warning you it's dangerous.
Sell portfolio secured puts on great companies, not grenades.
That's how you win.
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