08-21-2021, 11:27 AM
"If it was smart to buy the options I am selling I'd probably know after a couple thousand trades the past few years."
You are mostly selling naked puts, right? Pretty close to the money as well, right? A neutral to bullish directional opinion. If you or I had a bullish opinion, why we would we buy puts? We wouldn't, but guess who may?
You brought up NUSI strategy of using a collar for protection and capture some of the upside. THAT'S who is buying your puts. They hope the put expires worthless as they capture the upside.
That's the part that gets into people's heads, thinking that you are selling a put to me and I bought it as a speculative trade with bearish opinion. That is definitely not the case.
You are mostly selling naked puts, right? Pretty close to the money as well, right? A neutral to bullish directional opinion. If you or I had a bullish opinion, why we would we buy puts? We wouldn't, but guess who may?
You brought up NUSI strategy of using a collar for protection and capture some of the upside. THAT'S who is buying your puts. They hope the put expires worthless as they capture the upside.
That's the part that gets into people's heads, thinking that you are selling a put to me and I bought it as a speculative trade with bearish opinion. That is definitely not the case.