Anyone using covered puts

[Kerim]

Thanks very much, everyone -- this discussion is super useful. I completely agree with how you have laid out the situations, cg747. Like fenders, though, I feel comfortable with situation 3, given what decisions I would choose to make otherwise.

Another factor that crosses my mind is that I always keep a cash position larger than most would advise. I just sleep better that way. If my experience is anything like fenders', with most puts expiring without being exercised, then this could be a good way to generate income from the cash portion of my portfolio better than the 2 percent I can get at the bank. Yes, there is more work and risk involved, but I am eager to explore it further.

Thanks again!