Couldn't agree more Mike. It applies whether you are selling a put on an index, sector EFT or individual stock. In my perfect world I desire truly oversold. In the real world a big down day will suffice. I sold calls last week. Today I sold a few puts. Makes no sense to fight the market trend of the day or week.
I've been wanting an insurance company for awhile but missed the last sector dip. MET Life and Prudential got destroyed with the sector today. Completely irrational as their earnings are strong. Considered strong buys by some analysts before the slaughter. Solds some JAN puts at a fat premium. We'll see if I own them next month. This is my 4th attempt to purchase MET. I just keep collecting the premiums so far. Also sold a Vanguard REIT EFT put today. Not nearly as oversold as much as I'd like but I will roll it forward if I need to. I have puts on REITS like O but I honestly don't understand the biz well enough, and they seem overpriced some now. My current thought is I might be better off with a REIT EFT that pays a higher DIV anyway. At least for now. I have 21 options open at the moment. All of the utility puts are going to expire worthless yet again unless something changes soon.
I've been wanting an insurance company for awhile but missed the last sector dip. MET Life and Prudential got destroyed with the sector today. Completely irrational as their earnings are strong. Considered strong buys by some analysts before the slaughter. Solds some JAN puts at a fat premium. We'll see if I own them next month. This is my 4th attempt to purchase MET. I just keep collecting the premiums so far. Also sold a Vanguard REIT EFT put today. Not nearly as oversold as much as I'd like but I will roll it forward if I need to. I have puts on REITS like O but I honestly don't understand the biz well enough, and they seem overpriced some now. My current thought is I might be better off with a REIT EFT that pays a higher DIV anyway. At least for now. I have 21 options open at the moment. All of the utility puts are going to expire worthless yet again unless something changes soon.