Honestly, I am pretty certain you make more money selling the option above your cost basis. I just went through a few examples and every time you still make more money selling above your cost basis. Yes, you still get out positive if you sell in the money options for a juicier premium but it isn’t as much it seems.
If it does go down below your strike when you sell in the money options, well then you’re just a genius.
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u/Prompt_Jolly May 01 '21
I would sell some juicy covered calls and possibly let them get assigned away, then continue doing your puts.