i don't agree with this logic. If you want to own a stock, it should only be because you think it will go up. Acquiring through selling puts means you will acquire the stock if you are wrong but miss out on the rally that you expected.
Plus,unless you are Buffet,9 out of 10x when it gets to your short strike,you really dont want to own it there.. And who wants to be dead right on a stock and make 50bps on some put?
Do you have the actual trades to back up what you claim as your strategy? If not, then it's nothing. There are good traders on ET that we don't ask for proof but you are not one of them and that's why I am asking for proof from you. You know what you wrote is unsubstantiated so that's why you keep calling it "opinion" which is fine because that's exactly what it is, opinion. I just don't want people to be misled thinking that your strategy would actually work because it doesn't unless you show us otherwise. That's all I am saying.
Obviously, if you know the stock will go up then you should not sell puts but instead be buying calls. I never reach the level of certainty where I *know* a stock will rise or fall. There is always some level of doubt. Being right on the direction is hard. Being right on the direction and the timing is really hard.
the greatest sin in trading is being right and not earning on it. That’s selling puts on a stock you think will go up.
Greatness doesn't come easy,but I do believe the great ones take directional bets with the underlying or directional option plays with an asymmetric payoff... That would be in addition to trading Verts/Flys and short vol in a "prudent" size... Most option traders tend to maximize the likelihood of making money (sell puts) as opposed to maximising returns(asymmetric option plays)..
Factor in that's it's been a 1 way market with one V bottom nanosecond correction and it's,easy to see how he made money... Unless he's one helluva stock picker,he most likely underformed as most short put strategies do..
I'm not sure that is true. All the guys over at WSB seem to be pretty focused on maximizing returns via highly asymmetric option positions.