Yes, that is true for buying options, not for selling, when you sell and it is ITM, you get called or assigned even if it is ITM for a penny. I do this for stocks/ETFs I absolutely do not mind owning...I sold FCX 19 puts for $2.52 for May 21 options that make me $252 regardless of what the stock does, the only problem would occur if it crashes to $15 overnight (which is not impossibly but not likely)
Ahh, ok, because you mentioned you saw them selling for .76, so I figured you meant buying them at that price. So you could sell 1 and get $76 premium, but would then be long the stock at...whatever price the stock settles at?
An example. NIO closed yesterday around 48. If you sold the 47 Put for $90 near the close yesterday you're currently in a loss of approx. $245. Maximum profit was $90.
Are you in the insurance business? Selling unhedged options puts you in that business. Do you think you are smarter than the market makers on the options exchange in obtaining good price fills?
I started in January of this year. I took some time to refine it. But most of my trades have an annualized return of at least 40% up to 400% But again the sample size is very small at now 210 trades. When I started the premiums were much wider and I had from 5 to 12 sales going on. Now I am lucky to find 4. This last week only 2 met my criteria. Both were easy winners. Yes the gain is small, but your making it in a day. Right now as you can see in the chart my avg gain per trade is 143.54. But I am being very conservative in my position sizing. But lets see where I will be after 500 trades