@JasonPynn High odds of keeping the premium still leave the gap risk. One down open can wipe out months of collected premium. The number I check first is how likely I am to be assigned, not how good the yield looks.
@PBInvesting A 90% chance of keeping the premium is not a small loss. Sell a $100 put for $1. The stock gaps to $80. You keep the $1 and you are down about $1,900. Research only, not advice.
Before I sell a put: earnings before expiry (I skip those), how far the strike is below the price, and whether the bid-ask is tight.
Free screener, S&P 500 and Nasdaq-100: https://t.co/ueEPUqP35u
Research only, not advice. A short put can lose far more than the premium.
A 90% win rate on a short put means about 9 in 10 expire worthless. It says nothing about the one that doesn't.
Sell a $100 put for $1. Stock gaps to $80. You took in $100 and you're down about $1,900.
Size for that case, not the average.
Research only, not investment advice.