I already said I don't do it anymore. It's meaningless to me. This thread is already years old. I plan to be around for more years. The trade data will grow every week. Be patient.
I do a similar strategy, but I start with put credit spreads. If the market tanks, I can roll to OTM puts. Since my put spreads are narrow, I can roll about 3-5 puts spreads into one naked put. For instance, I sold some 29/28 put credit spreads on PLTR and got about 0.55 per spread. If the stock drops to 15, I could roll about three spreads to a single ATM naked put for the next week. If I were starting with naked puts, I'd probably be able to roll down from 28 to 27 at best. I also buy iron condors on SPX and RUT as hedges, using a portion of my premium each week.
I do a bit of everything, but selling cash covered puts is like 2% of my portfolio action, on stocks that I would have bought at that price. I am not a professional expert but I lived through a couple of black swans. And it's because everything is affected in one that I feel like I don't need that fat tail risk.
What do you do to minimize black swan exposure? I have repeated many times I don't do leverage. Any one trade is only a small percentage of my total portfolio. How is the 98% of your portfolio that is not involved in put selling safer than that 2%?
when you mean you don’t use leverage, do you mean that the notional value of what you trade is < than your equity balance? that if everything expired in the worse way (risk wise) you wouldn’t have to borrow money from margin?