(01-13-2022, 12:39 PM)Dividendwayfarer Wrote: Closed my TSM put (strike at 124, expire on 1/28) today with a 90+% gain after 2 day of sale; one of those rare instances where I got really lucky. Most of the puts I sold are making $$ while most calls are not doing so well.It seems to come in flurries. I can honestly say 80% of my put sells end well. There are definitely times I roll them forward once to achieve 80%. I really try to not sell puts on stocks I am not comfortable owning and covered call sells happen if I change my mind.
My biggest issue is when to close a trade that goes my way immediately. I get serious about closing as about 75% but I can usually tell how urgent that may potentially be. That said, if you are 50% profitable in a day or too it's likely there is a better trade out there.
And lest I make this sound too easy, there are definitely bad months and I shut the strategy down when I smell it coming. After about five years it's fair to say I can avoid half the rough stretches early. It took time to learn it's a bad time. I certainly place troubled trades sometimes.
BTW I like that trade a lot. A quality stock in a great sector unlikely to see negative momentum. If it goes bad, well you now own a good stock you know will be more than OK with patience. That is a perfect as a put sell can be IMO! Congrats on your decision.