08-31-2018, 07:42 AM
Selling cash covered puts is something that has intrigued me but I have never done it. I need to enter a number of new positions and this seems like a strategy with very little downside since I intend to purchase the stock anyway. I thought I might wait for a day when a few watch list candidates have dropped a few percent, then sell a put just out of the money. Seems like an easy way as any to drop the basis a few points. Am I missing anything?