08-24-2014, 11:11 AM
(08-22-2014, 09:04 AM)NilesMike Wrote: Sell puts in the stocks you like, at the price you would like to buy it.
Stock falls to your price, you get assigned, no hesitation (and you got it even cheaper due to the credit collected when selling the put)
Stock doesn't fall to your price, let the put expire worthless, keep the premium and do it again.
I do put sales on my regular account (which has more money in it) but keep in mind that puts are usually sold for 100 shares.
Make sure you have the money to back at least a single assignment before you start selling puts (you can buy-back the rest if you have multiple puts at assignment level and you don't have enough cash for them all).
I'm not allowed to sell puts in my IRA and my account size is significantly smaller so I just buy at market price (using limit orders) and don't care about if it's a bit higher or lower because the purchases are so small (~$1000 each).