12-04-2018, 11:06 PM
Those who wish to "practice" selling puts can use SPY to master the mechanics.
Benefits, 500 company diversification, no earnings surprises.
The key is often when to sell them. My long term analysis still has SPY in an uptrend. Therefore,, I sell puts right below last months low as SPY will very rarely close below the prior month's low when in the uptrend. If it does I take assignment and sell a call immediately against it.
ALWAYS sell puts on a down day as you will get much more premium as volatility will rise on the down move. Volatility will also benefit the call sale as the market will be unusually down at that point.
I have already sold and bought back the DEC31 262 puts this month. Couple hundred bucks per contract.
Practice the dance.
Good luck to all.
Benefits, 500 company diversification, no earnings surprises.
The key is often when to sell them. My long term analysis still has SPY in an uptrend. Therefore,, I sell puts right below last months low as SPY will very rarely close below the prior month's low when in the uptrend. If it does I take assignment and sell a call immediately against it.
ALWAYS sell puts on a down day as you will get much more premium as volatility will rise on the down move. Volatility will also benefit the call sale as the market will be unusually down at that point.
I have already sold and bought back the DEC31 262 puts this month. Couple hundred bucks per contract.
Practice the dance.
Good luck to all.