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Strategies & Market Trends : Option Strategies

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To: diegosan who wrote (2238)	2/2/2021 10:03:43 AM
From: THornsby	Read Replies (1) of 2591

Diego AFAIC, for a retail investor selling puts for income or for acquiring the stock at a better price, implied volatility is only relevant for judging if it's a better time to sell (higher premium). For example, if you have something on your radar, selling just before an earnings announcement will be more rewarding since the premium will temporarily be fatter. Open Interest should not be a consideration if you are selling the puts to acquire at a lower price and the bid/ask spread is narrow. Premium price and cost of acquisition is your consideration. If you are trading the option then liquidity would be more of a concern.

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