How far out are you writing these puts? What ARR are you targeting?I have been doing fairly short term ones repeatedly, slightly OTM.The price moves around a lot, so by sticking fairly short time frameI don't end up with options way in or way out of the money.When done repeatedly the rate of return is pretty good.I don't target a particular rate, other than never doing puts withouta time-premium-only rate of return of at least 15%/year annualized.The CHK ones have been so juicy that the rates have been much higher than that.The stock has risen 4.9% in the 7 months I've been doing them and my IRR to date on these is 24%/year.At the moment I have strikes 18,19 and 20 having just closed my 17s yesterday as there wasn't much left to be made on them.Expirations Feb-April.Usually I like to go for 6-12 months out on most stocks. More margin of safety.I find a good rule of thumb is the lowest strike and longest term that still gives me at least my 15%/year time premium, but higher strikes for the stocks that I really want to keep positions in longer term.The main thing of course is choosing the underlying security.I wouldn't do a put on CHK or anything else at any price unless I thought the firm was going to stick around long term and worth more than current market price.Frequently I'm wrong, but I have to at least believe that based on some evidence.With premiums generally so low lately I have only a tiny number ofsecurities that I like so much I still consider puts worthwhile.Next time the VIX is over 25 there will be better hunting.Jim
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