Selling put options can allow the generation of regular income, but deciding the strike price and expiry date is always challenging.By theory, a lower strike price will fetch a higher premium for sellers, but it comes with higher risk of assignment, possibly result in an overall loss instead.Also, by setting a further expiry date can fetch a higher premium for sellers too, but it comes with both risk and opportunity, for the stock price to fall or increase. Stock price fall can result in an overall loss, while stock price gain will increase the likelihood for the option to expire without value.To decide on the strike price, we need to determine what we want.1. If you want small profit with minimal risk, try to set a very far ‘out-of-money’ strike price, such that we can likely gain th

When we decided to buy a stock, we might have experienced a fall in stock price, causing us to suffer from paper losses. The only way to recover from the paper loss is wait for the stock price to recover back to our cost price, which sometimes can take very long to happen.But if we use options to trade stocks, with the power to convert time into money, it can be potentially profitable over time, even when the stock price falls and never really recovers, since we can make some small profit aswe sell puts over time.Using $Tiger Brokers(TIGR)$as an example,supposed you sold 1 lot of put with strike price $5, expiry date 20210121, at existing stock price of $4.31. Assuming at the end of 20210121, the stock price falls to $4, and you got