Sell Puts

Quote from maninjapan:

ok guys, a purely theoretical exercise here. If you had to choose a stock to sell puts what would it be?
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Sold Dec 80P on AAPL. Would be delighted to get assigned as it will be ~2x cash at that price. And there is zero chance of a margin call on assignment - homey don't play that.
 
Don't forget, if GE does not fall too far below 20 at expiration. You can just roll your short puts into a future month and get more premium.

A naked short put is similar to a covered call. So if you are put the stock, selling the 20 call would be like rolling the 20 puts.
 
GE is an interesting stock to trade. Just at 3:40 you have a 1.7 million share buy imbalance, stock breaks the line of scrimmage at the last few minutes and premiums collapses.

These were 17.5 put's

I wrote a bunch of 22 calls for this month but those premiums are only worth like 5 cents now :)
 
Quote from mw_401:

What about writing puts on high-yielding stocks?
I know that Altria (MO) is at risk from the new administration, but what about Phillip Morris Intl. (PM)?
They both have a high yield and their products are not dependent on the economy.
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That has been a good play of late. Perhaps will evaporate with the fall in vol.
 
First -- make a list of stocks you'd like to own if they got real cheap. Then put "silly stupid" GTC orders in. I managed to sell F10 HIG $5 puts for $2.50 that way. And F10 XOM $55 puts for over $12.
 
Many people are saying things like - "I wouldn't sell puts on anything, the market is too volatile" if that's the case you're only looking at 1/2 the picture. Even if the market is volatile, if the IV of the puts you sell is much higher that the stock's actual vol, you can still make money if you are careful and manage risk. If you don't believe put writing is a good strategy in this market, then when do you pursue this strategy? When vol is low? If so you aren't compensated as much for your puts and you have a better chance of vol rising to hurt you.
 
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