My approach to selling puts.

i don't understand this. you sell puts against balance sheets that have a lot of cash? Like insurance companies and aapl? are you levered (in that you can't take a full assignment)?
I like insurers, not tech

I am levered and take assignments.
 
I like insurers, not tech

I am levered and take assignments.

how does the cash rich balance sheet fit into this? typically cash (that's not encumbered by a liability) is a pretty small %age of the equity value.
 
how does the cash rich balance sheet fit into this? typically cash (that's not encumbered by a liability) is a pretty small %age of the equity value.

i think it’s just a screening method that brings the total number of names he follows down to a manageable number
 
3) My big wins are when a defensive cash rich balance sheet with an option chain is facing an event of some sort that the market does not understand. I spend my days reading SEC fillings so I have an edge here.

Can you give an example of this where you were successful in a past trade?

How many trades do you do annually?
 
Let's please put into perspective the success of a short put strategy in a ragin bull market...

That often makes put selling look like a home run cannot lose approach until the market starts dropping and you are selling falling knives.

Also, the market was up so much you would have made way more money with the same type of leverage simply going long the market as short puts are profit capped.
 
Not trying to take anything away from OP @tonyf but why is everyone surprised that these returns are magical?

He is long and levered at that in a bull market.

Absolutely. I have no hope in replicating this performance over the next 12 months.
 
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