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Strategies & Market Trends : Option Strategies

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To: sm1th who wrote (2496)	4/21/2023 5:37:30 PM
From: FIFO_kid2	of 2591

SM 1TH- I think selling puts is best indicated for neutral and consistently sloping bearish markets and you certainly need to think much shorter term to outperform the market. I think by taking this approach an investor can outdo treasury bill interest income returns on cash and the inflation rate. If I am bullish or see conditions of market capitulation I will simply buy on the open market and under those conditions I tend to gravitate toward lower priced higher beta names. My minimum target is also 1% or greater per month but it is performed by multiple transactions and over a shorter period. While I don't totally reject the monthly contracts they do tie up capital. With regard to my recent heavy action of put sales across the banking sector in very few circumstance did I know what the marked to market book value of the financial institution (WAL was the exception)hence I chose to sell the puts vs finding the proper timing and buying the stock for that particular issue. So it was a trade for dummies who are satisfied with the predetermined potential profit and you don't have to necessarily be on the positions like a hawk.

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