I read your question and read all the responses. Many mentioned the danger of selling PUTs and how it might blow up. As an option seller for 16 years, I should say they are right but not 100%. It depends how you manage your trades or willing to take the risk or what you do after the stock goes down and you are assigned the shares. The same problem (even worse) will happen if you buy the shares. If you buy the AAPL shares at 125 , you are in more danger than selling PUT 120. You can always put a stop loss on option. well someone might say what if that drop happens after hours and you cannot trade options? Then the answer would be sell a spread. (sell 120 and buy 115) and go to sleep. You mentioned you want to sell 10 PUTs. It is a 120K position (at least the potential is there). Is your account over 1M? If no, never ever do this trade. For me that I have 3 huge accounts, and my risk appetite is high, I never do that. I know that you used aapl as an example. If I wanted to do that trade, I would sell at 1.25 and then put a mental buy at 3.25. Then my loss would be $200.