How's your buy and sell timing?

[crimsonghost747]

(11-26-2018, 11:22 PM)fenders53 Wrote:  Selling covered puts to enter long positions is the smartest strategy I've ever employed.  It's a can't lose proposition if you are going to buy the stock anyway.

That is not exactly true. You could be forced to buy in too early, for example with a short term put during a large correction you'd be going in on the stock at the beginning of the correction and if you were holding onto long term puts you're entry price could be tens of percentages higher than the current market price.

There is also the other thing where you keep selling puts but the stock simply goes up and up and up. You will keep collecting the premium but end up one day with an entry price significantly higher than you would have gotten by just buying it in the first place.

I do like puts too but you have to remember that there is no such thing as a free lunch.