09-05-2018, 10:45 PM
(09-05-2018, 09:59 PM)NilesMike Wrote:(09-01-2018, 04:14 PM)fenders53 Wrote:(09-01-2018, 03:08 PM)NilesMike Wrote: Some drawbacks are that you can only do it round lots of 100 shares.
You will not participate in the stock price growth.
A plus is you will far exceed 2-3X any dividends with the put selling.
Appreciate the input. I often buy round lots. But I am definitely NOT scheduling $20-30K stock purchases 30-45 days in advance. The premium may look good but too much can happen to change the story when going past a month at times.
Are you only selling weekly puts?
No, you can't get premiums to make it even close to worth it for most DGI stocks if you go under a month. I'm not making a 100 share commitment for $20 premium. Easier to wait for a down day and head straight to covered calls. That changes of course when volatility returns someday. My comment above was more related to AAPL. 100 share assignment will set you back $22K+. After a pullback then a covered put makes more sense to me. Not at lofty valuations after the market has run for a few months and the stock is approaching overbought. I have not had much luck getting a put trade to execute at my price lately when I try to squeeze the last $10 on a limit order. I'll continue to try to make it happen on my terms.