I prefer OTM strikes with enough downside buffer, typically giving myself time for theta to work without taking unnecessary assignment risk. But the biggest lesson is that a high premium often comes with a reason: elevated IV usually means the market expects bigger moves.
I also prefer limit orders, especially when spreads are wide. A few cents of execution difference may look insignificant, but repeated across multiple contracts, it adds up.
Most importantly, I treat assignment as part of the original plan, not a failure. Before entering, I ask one question: If this stock falls another 30%, would I still be comfortable owning 100 shares? If not, I shouldn't be selling the put in the first place.
@TigerClub [思考]
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
