DiviMo's Blog : RTMB Option strategy regarding PEP

 I wrote a number of puts this past week (check us at stock twits). The problem a lot of investors have is they are looking for an “easy” put selling opportunity. They rarely come around. When markets sell off, fear keeps a lot of investors from putting their capital to work. The RobtheMarketBlind bandit traders know when to get in. This week I sold PEP contracts. You take your time and sell a handful with each fall back. But for many investors they do not understand that the selling is what they want and it is when they should be looking to sell puts. There is no need to commit all your capital. You take your time and stretch out your put selling over a period of days and weeks, taking advantage all the time of weakness in markets and in individual stocks.PEP is a perfect example. I got better premiums Thursday than Friday, yet Friday the stock pushed lower. Thursday fear was higher in PEP and some investors paid too much for puts as they tried to protect their positions or felt that PEP would fall lower. Perhaps it will, but the best premiums are during the fear period which you can spot just by following the stock’s volatility throughout the day. One needs to take advantage during individual stock panic fears on a strong stock and 'rob the markets blind'.It takes investors using the RobtheMarketBlind methodology to step up and risk their capital while others are selling their stock and buying puts. For those who cannot stomach selling puts while stocks are collapsing, they need to look at other option strategies. Using the writing naked puts strategy I got over $70 premium. The other way , the spread (sell 62 put, buy 60 put) that other blogger here commented on, yields at best $43. And besides, RobtheMarketsBlind is currently batting 100% , no misses, all winners.We'll soon be doing our own alerts/emails for trade picks and it will be free for six months!