Making Put Selling Decisions

By Lawrence G. McMillan

This article will describe some of the methodology that we use to select recommendations for this newsletter.  Several subscribers have asked questions regarding how we go about this, so we’ll attempt to answer them by describing the processes that we use to recommend naked puts. In future issues, well address volatility skew positions, and even put-call ratio based trades. 

This is not to infer that our way is the only way.  In fact, in some cases, other methods will be discussed as well.  However, our methodology is at least logical and based on sound statistical/option theory.  That means it usually doesn’t involve “stock-picking,” which is often a vague and nebulous activity.

For the most part, we choose our positions based on data that is available on The Strategy Zone – the subscriber area of our web site....

Read the entire "Making Put Selling Decisions" article (published 7/13/12) by subscribing toThe Option Strategist Newsletter.