Crazy ayzo 7 Report post Posted September 14, 2018 (edited) I have a newbie question... My goal is to continually populate my LONG positions by waiting for dips in highly traded stocks like google, Facebook, Tesla, HSBC, etc. Since I'm willing/waiting for a price drop to get into a volatile stock... rather than just placing a simple limit order and getting the stock at the price I want if it goes down; * Would it be more profitable to either ** Sell a Naked Put at my desired strike price (that way I get the sale price of the put in addition to getting the stock at the price I wanted)j ** Sell a naked put at my desired strike price + the value of the put; thereby increasing my chances of getting the stock I want at the same net cost. Edited September 14, 2018 by Crazy ayzo Share this post Link to post Share on other sites
Kim 8,035 Report post Posted September 14, 2018 It definitely could be a good strategy, but the key is position sizing. In other words, don't write more puts than the amount of stock you are willing to own. More reading: Selling Naked Put Options The Naked Put, A Low-Risk Strategy 1 Share this post Link to post Share on other sites
