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@asklivermore Would you be willing to do video(s) on how to choose the right call/put when you do pull the trigger? Feel like I lose out trying to determine DTE and level
After years of selling cash-secured puts - here's the strategy that works for me consistently
The setup I look for in Cash Secured Puts:
-Extended below 8/21MA on any given timeframe focused
- RSI in 30-40 range
- Depending on Timeframe: 5DTE - 30DTE
- Strike Price is chosen by using my Support levels (5-10% OTM per 5DTE)
- Close around 50% profit or more. Stack the chips
- If assigned, flip to covered calls above cost basis or breakeven price.
You can repeat this cycle every single week (3-4 times a week)
The way I think about it:
- These profits collected from Cash secured puts are re-invested into another Cash secured put position or into a stock to DCA in
Base hitting is the key
My favorite names to sell puts on right now:
- $NBIS - high IV, strong AI infrastructure thesis & never worry once bit being assigned
- $HOOD - Extremely liquid & friendly premium for sellers. Never worried once being assigned Robinhood
- $RKLB - strong long term setup for Space stocks, any given pullback gives us massive 5-30DTE cash secured put opportunities
What I've learned to avoid:
- Selling into earnings, CPI, or Fed days
Selling into the wrong names that have wide spreads or low liquidity stocks
- Names I DONβT want to own. Even if Iβm SURE that I wonβt be assigned
- Entering without a clear given support level / chart setup giving me a reason to sell put
I wait for red days on my favorite stocks and collect premium like rent.
Be the landlord. Be the dealer. Be the house. Be the seller.
Would you guys like me to write up a similar write up but for covered calls?β¨β¨Please hit the retweet & β€οΈ if yes!