(09-30-2021, 03:22 PM)And if you make 35k a year congrats. Your selling puts aren\t you and keeping the premium? But there's also a lot of risk with that, If the stock falls below the break-even price of the assigned shares, losses would occur. No? Wrote: I'm dying how you win at this strategy? Maybe post exactly what you are doing for us dumb people like meNothing is risk free. I've been assigned shares about 40-50 times in my last 1000 trades the past year or so. I can often avoid it if I choose to. Sometimes I get stuck buying the very same shares we talk about on the forum here daily, but I picked the entry price. Today I got paid to commit to buy MO shares 15 days from now for $45. Maybe I will or maybe I will roll it to a lower price if necessary. How much did you pay for MO today? My basis would be abut$44.50 after premium and I am OK with that. I rarely sell puts against stocks I am not very OK with owning. 90% of my trades are boring. ENPH pays better.
I keep that stuff to a minimum as we never know when the bear comes for real. It's a lot like an intro to statistics class but it requires capital and the willingness to put in some time. Primer youtube videos at least. It's not for everybody. The forum has a thread on the subject.