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Anyone using covered puts
#13
(09-06-2018, 06:09 AM)NilesMike Wrote:
(09-05-2018, 10:45 PM)fenders53 Wrote:
(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.

Selling a put or buying covered calls is synthetically the same position. Except that selling a put has less commission..

I agree to wait for a pullback, better stock price and a likely bump in volatility gets you a better premium on the put.

One does not need to get assigned, you can buy back the put at a loss or roll it further away and further out in time.

Selling puts beats buy and hold.

It sure can when the market runs in the proper direction.  I sure try to figure it out but I'm often wrong when I think I know where the market is going next week.  I don't aspire to be the option king but judicious use of them adds income along the way,  That said I did sell a KHC put today.  A stock I'd like to own a larger position of at a lessor price and if not I picked up a nice premium.  I am mixing things up.  Long positions, CC positions and some put sales.  I'll sort it out.  it's nice to have something working no matter which direct the market heads short term.  If the market makes a real drop I will be all over some puts as I want long positions in the end.  Most of my put sales are only 1-2 contracts so it isn't worth it to me to chase tiny premiums.
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Messages In This Thread
Anyone using covered puts - by fenders53 - 08-31-2018, 07:42 AM
RE: Anyone using covered puts - by ChadR - 08-31-2018, 08:54 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 09:03 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 09:39 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 10:45 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 11:53 AM
RE: Anyone using covered puts - by NilesMike - 09-01-2018, 03:08 PM
RE: Anyone using covered puts - by fenders53 - 09-01-2018, 04:14 PM
RE: Anyone using covered puts - by NilesMike - 09-05-2018, 09:59 PM
RE: Anyone using covered puts - by fenders53 - 09-05-2018, 10:45 PM
RE: Anyone using covered puts - by NilesMike - 09-06-2018, 06:09 AM
RE: Anyone using covered puts - by fenders53 - 09-06-2018, 11:58 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 09:40 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 01:41 PM
RE: Anyone using covered puts - by NilesMike - 09-07-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 08:01 PM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 10:49 AM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 01:43 PM
RE: Anyone using covered puts - by NilesMike - 09-12-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 09:24 AM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 11:48 AM
RE: Anyone using covered puts - by NilesMike - 09-13-2018, 08:20 PM
RE: Anyone using covered puts - by fenders53 - 09-14-2018, 07:33 AM
RE: Anyone using covered puts - by fenders53 - 09-20-2018, 03:43 PM
RE: Anyone using covered puts - by fenders53 - 11-01-2018, 07:39 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 11:26 AM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 09:29 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 04:48 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 09:18 AM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:29 PM
RE: Anyone using covered puts - by ChadR - 11-30-2018, 04:01 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 04:41 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:08 PM
RE: Anyone using covered puts - by Kerim - 12-01-2018, 01:29 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 05:50 PM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 07:09 AM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 08:57 PM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 08:32 AM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 11:48 AM
RE: Anyone using covered puts - by Kerim - 12-03-2018, 10:59 AM
RE: Anyone using covered puts - by NilesMike - 12-04-2018, 11:06 PM
RE: Anyone using covered puts - by fenders53 - 12-05-2018, 01:07 AM
RE: Anyone using covered puts - by Kerim - 12-07-2018, 03:25 PM
RE: Anyone using covered puts - by ChadR - 12-07-2018, 03:32 PM
RE: Anyone using covered puts - by fenders53 - 12-07-2018, 05:17 PM
RE: Anyone using covered puts - by fenders53 - 12-26-2018, 06:09 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 11:47 AM
RE: Anyone using covered puts - by Kerim - 01-01-2019, 12:16 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 01:04 PM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 09:18 AM
RE: Anyone using covered puts - by NilesMike - 02-17-2019, 09:25 AM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 08:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:17 AM
RE: Anyone using covered puts - by Kerim - 02-18-2019, 05:27 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:10 PM
RE: Anyone using covered puts - by fenders53 - 02-19-2019, 08:14 AM
RE: Anyone using covered puts - by NilesMike - 02-18-2019, 06:03 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:05 PM



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