r/options
Selling puts
Author plans to sell puts on RDDT and SHOP following a market crash, viewing current levels as reasonable entry points.
- Market pullback provides attractive entry valuations for high-growth stocks.
- Selling puts generates premium income while waiting for potential rebound.
- Continued market volatility could lead to further downside risk.
- High-beta stocks like RDDT remain susceptible to sharp corrections.
Market had a crash day, looks now reasonable to start selling puts on some stocks like RDDT, SHOP, lets se how the next week starts
Zoom out.
It works great until it completely blows up in your face! 😂
yes of course, if you like rddt at 185 yesterday, you should be loving it if you get at 155 by Jun 18.
who would love RDDT at 185 yesterday, it way over the 6 month average, plus it’s casually down 3% after hours
17Jul 39dte 155 30 delta $8.30, not so much, but the 140 for $4 is a 16 delta.
It’s all
Fun and games until you sell a put and end up with a stock…
And the price keeps dropping…..
You can sell calls as well.
Not sure why others don't get this?
NOK it off - my $16 PUTs i sold are listening in the next room. 😤
No different than buying stock outright and the next day it goes down. You at least get premium out of it to lower your cost basis.
💯
I don’t understand the aversion in the comments. You should be doing puts on stocks you’re happy to buy. I don’t want to try to time the market so I put puts at price levels I would be happy to hold for good companies.
Start selling deep OTM calls when assigned and slowly move the strike price closer as the stock gets back to overvalued.
And the wheel turns…
size it so cash-secured assignment doesn't wreck you. one bad gap can blow past your strike overnight, and selling puts caps your upside at the premium while leaving the full downside open. close at 50% profit instead of riding to zero, roll down and out if it goes against you, and don't stack all your puts expiring the same week. waiting to see how next week opens before piling in is the right instinct, let the IV stay elevated and leg in.
From reading these comments people seem to think you will be assigned if your strike is hit. If you have 14dte left doubtful, and usually that would reduce your loss. Even 30pts ITM has too much extrinsic value. Also people seem to think keeping a stock you are assigned is the thing to do, also doubtful, just close it , take the loss and move on.
This is not the way. The best decision is long dated at or near the money, or just be cashgang over the weekend and not eat theta.