Selling put options proves to be a profitable way of trading compared to what I did previously!
The flexibility of this technique coupled with the risk management of it make it a very attractive strategy for someone who has never made any real money in the stock market like myself.
There are many ETFs available. Go for those which are high in liquidity and thus low spread between bid and ask prices. For example, the SPY, QQQQ, IWM, etc.
In selling put options, remember, you just want the underlying ETF to stay above the put strike price which you sold the put option, to make money. Sounds easy? :) perhaps.
If you know technical analysis, great! Sell put options below the support line to give you that added edge. Else not to worry too much, try aiming for around 10% below the current price. You may have to sell 2 or 3 months out.
Wild dreams
