Here are my experience:
1. Selling put on stable growing instrument like SPY, msft fb mc.
2. Expiry date not too long like 2 week to 4 week ATM because more premium
3. If not in favorite direction, exercise the sell put to hold the stock, roll over, or sell covered call
4. If big fall, just realize that you hold a stock in a relatively high price and waiting the bull market return. Remember market (SPY) will be up trending in long run.
5. If big fall, not to use roll over, just hold the stock and NOT sell covered call
6. Remember the money using to sell put is only a small portion of your capital. i.e. 50% long term, 25% sell put, 25% buy the dip.
7. At the beginning, I will select high volatility stock like fanng and msft, any strike price is fine. If sell put assigned, no problem, the market is will resumed after the small DIP.
8. WHY I prefer ATM put? I used to sell spy OTM put, but the premium is so low that I used to sell more contracts. Selling large no. of contract is very dangerous in big fall of the market, even OTM put will also be exercised.
9. Instrument selection is not based on IV, it is based on what instrument you can hold for more than 10 years.
1. Selling put on stable growing instrument like SPY, msft fb mc.
2. Expiry date not too long like 2 week to 4 week ATM because more premium
3. If not in favorite direction, exercise the sell put to hold the stock, roll over, or sell covered call
4. If big fall, just realize that you hold a stock in a relatively high price and waiting the bull market return. Remember market (SPY) will be up trending in long run.
5. If big fall, not to use roll over, just hold the stock and NOT sell covered call
6. Remember the money using to sell put is only a small portion of your capital. i.e. 50% long term, 25% sell put, 25% buy the dip.
7. At the beginning, I will select high volatility stock like fanng and msft, any strike price is fine. If sell put assigned, no problem, the market is will resumed after the small DIP.
8. WHY I prefer ATM put? I used to sell spy OTM put, but the premium is so low that I used to sell more contracts. Selling large no. of contract is very dangerous in big fall of the market, even OTM put will also be exercised.
9. Instrument selection is not based on IV, it is based on what instrument you can hold for more than 10 years.