writing a put

If I write a put of QQQ at a lower price with the intention to buy the QQQ at that price, do I need to cut losses?

 

I think it is similar to asking: "if I enter a buy limit order on QQQ at 290, do I need to limit my potential losses (eg use a stop loss)?"

It depends on your plan.

 

Nope. A nice scenario, indeed.
But it depends on the final value of QQQ. If it falls too much, then your "stock position" in QQQ will be in the reds, unhedged... But QQQ does not move that much in a short time frame, so the trade could be relatively safe...

 

as defined: no.

 

Not unless you change your mind if put - we all know that never happens.

 

Why wouldn't you cut losses?

 

He wants to own it...

 

Truer words never spoken..

 

LOL.
You would think he wants to own winners.
You sell a put and get the premium and then get assigned. You now have a long position and ther is no reason to not cut losses.

 

Welcome to the world of value investing