One question filters out 90% of bad options trades before you make them:


"Am I willing & ABLE to own this at my strike?"
Willing... would I be genuinely happy holding this company for years at that price?
Able... could my account actually take the assignment without breaking a sweat?
If either answer is no, there's no trade. Period.
That one filter kills the meme stock puts. The oversized positions. The premium chasing on garbage. The spreads people use because they're secretly terrified of the companies they're trading.
Every put I sell passes both. Elite company. Great price. Base portfolio that covers it with ratios in check.
That's why assignment never scares me... & why I sleep like a baby through red.
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
  • Pinned