Before I sell any put option I ask myself one question.


"Am I comfortable holding these shares long term if I get assigned?"
If the answer is no.
I did not do enough research.
I do not actually believe in the company at this valuation.
I do not sell the put.
I move on.
If the answer is yes.
I sell the put (portfolio secured not cash secured)
Collect the premium.
Deploy it into shares and LEAP calls of the same company.
If I get assigned I am happy.
I own a quality company at a cheaper price.
If I do not get assigned the put expires and I keep the premium.
I win either way.
That is the whole beauty of the portfolio secured put when done right.
You are getting paid to wait for a price you already want to buy at with no cash drag of a cash secured put.
If you are not willing to own the shares.
Do not sell the put.
95% of trades I look at.
I say no because of this exact question.
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