How to Maximize Potential of Selling Option Puts

To maximize your potential when you want to sell naked puts, keep the following in mind:

Use this options trading strategy when you are sure you would want to own the underlying stock of the put option
Use this technique only when the implied volatility is high
Do not sell options with more than 60 days remaining until they expire
Sell put options with delta between 0 and -50
Look for key support levels for the underlying stock and write options with strike prices close to or below the support level


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