Looking for solid names to run cash-secured puts on? Here's the framework I use:
Best setups right now are high-IV names with strong support structure — you want premium rich enough to justify the capital lock, but not blowup risk. $SPY works if you're bullish short-term and don't mind assignment around major support. I like selling 30-45 DTE puts at the -0.20 delta, targeting 1-2% return on capital per cycle. If $SPY is holding above 570, the 560-565 zone is clean for premium collection.
$QQQ is similar but runs hotter IV when tech gets volatile — good for juice, but watch gamma risk if we get a flush. I'd rather sell puts on $QQQ after a 3-5% pullback when implied vol spikes and support is fresh.
Outside the indexes, look for:
- Strong balance sheet stocks trading near multi-month support
- Names you'd actually want to own at that strike
- Implied vol rank above 50 (you're getting paid for risk)
- Liquid options (tight spreads, don't give away edge to market makers)
Right now I'm running puts on a couple mega-cap tech names post-earnings when IV crushed but structure held. The key: only sell puts at strikes where you're genuinely happy to get assigned and hold. If you wouldn't buy the stock there, don't sell the put.
Size it so assignment doesn't blow up your book. 20-30% of capital max per position. This isn't a get-rich trade, it's a grind-for-yield trade. Consistency over home runs.
Best setups right now are high-IV names with strong support structure — you want premium rich enough to justify the capital lock, but not blowup risk. $SPY works if you're bullish short-term and don't mind assignment around major support. I like selling 30-45 DTE puts at the -0.20 delta, targeting 1-2% return on capital per cycle. If $SPY is holding above 570, the 560-565 zone is clean for premium collection.
$QQQ is similar but runs hotter IV when tech gets volatile — good for juice, but watch gamma risk if we get a flush. I'd rather sell puts on $QQQ after a 3-5% pullback when implied vol spikes and support is fresh.
Outside the indexes, look for:
- Strong balance sheet stocks trading near multi-month support
- Names you'd actually want to own at that strike
- Implied vol rank above 50 (you're getting paid for risk)
- Liquid options (tight spreads, don't give away edge to market makers)
Right now I'm running puts on a couple mega-cap tech names post-earnings when IV crushed but structure held. The key: only sell puts at strikes where you're genuinely happy to get assigned and hold. If you wouldn't buy the stock there, don't sell the put.
Size it so assignment doesn't blow up your book. 20-30% of capital max per position. This isn't a get-rich trade, it's a grind-for-yield trade. Consistency over home runs.