05-28-2020, 08:14 PM
It's good advice. I sell quite a few puts when it makes sense. It's a battle to not force a strategy and push trades. I really try to abide by some personal rules, even if they are a little general. Not saying I don't bend mine, but I have learned not to go buck wild spitting into the wind.
Selling puts is statistically more likely to succeed when a stock is at least somewhat oversold, or appears to be sitting near support anyway. My rule is to never do the exact opposite of that. This would be when I am considering a call sale if income is the goal. IMO it's pretty rare when selling both a call and a put on a stock would be appropriate. It's one or the other, or possibly neither.
Selling puts is statistically more likely to succeed when a stock is at least somewhat oversold, or appears to be sitting near support anyway. My rule is to never do the exact opposite of that. This would be when I am considering a call sale if income is the goal. IMO it's pretty rare when selling both a call and a put on a stock would be appropriate. It's one or the other, or possibly neither.