Nice post. I've been selling naked puts as a method of buying stock and it has worked wonderfully well. I frequently use morningstar's fair value reorts and follow their advice on how much of a cushion to use. This has put me into a couple of stocks I wanted anyway at a time when I'd have hesitated on the purchase as the price had declined (they've all done well). The other put strategy I use is selling puts on co's with a solid dividend when the dividend approaches 5% (for ex SGP $15 puts, I just got paid on MO 27.5 puts). This has worked well for me for several years. The great danger I've seen is the greed factor setting in and over-extending yourself. However, even in 2000-2001 the 5% dividend rule has very consistantly worked well for me.
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