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Well, cash covered at least...

So I sold some on a stock that is trading below book value with a strike far enough below that I do not think it is likely to trigger.

If it is not exercised, it will give me about 6% on the cash that I had tied up over about 7 weeks. Probably a bit over 40% annualized.

We will see how it goes. It is a pretty small position since it is an initial experiment.

Anyone else have any experience with this sort of an approach?
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Not exactly sure I understand your question.

If you mean selling puts just for the income, then yes, I would say that is pretty common, even without cash coverage

If you meant specifically singling out stocks below book value, then I am not sure about that. Is your thesis that choosing a stock below book value indicates that it is less likely to fall more? I would be worried that a put with that high of a return while still being meaningfully out of the money would indicate that "the market" thinks there is definitely a risk that it would fall, or else your premium would be lower
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The premium is certainly going to reflect the implied volatility. The less risky the market views it, the lower the associated premium. But, even with thinner premiums I think that you can capture some decent returns by wash, rinse, repeat.

So I look for stocks that already had a recent downturn that has bumped up the volatility somewhat, but that I do not think will disappear in the next few weeks.

no guarantees, of course...
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