My approach to selling puts.

I like insurers, not tech

I am levered and take assignments.

 

how does the cash rich balance sheet fit into this? typically cash (that's not encumbered by a liability) is a pretty small %age of the equity value.

 

i think it’s just a screening method that brings the total number of names he follows down to a manageable number

 

Tony,

What ballpark percentage does your assignments run after February?

T

 

Can you give an example of this where you were successful in a past trade?

How many trades do you do annually?

 

Not trying to take anything away from OP @tonyf but why is everyone surprised that these returns are magical?

He is long and levered at that in a bull market.

 

Let's please put into perspective the success of a short put strategy in a ragin bull market...

That often makes put selling look like a home run cannot lose approach until the market starts dropping and you are selling falling knives.

Also, the market was up so much you would have made way more money with the same type of leverage simply going long the market as short puts are profit capped.

 

If you are selling puts at this point in time you will get punished for being a stupid f#ck.

 

So this means you think the market will rebound? Good for my outright longs then.

 

Absolutely. I have no hope in replicating this performance over the next 12 months.