Reader Mail: Selecting Options Strikes
There's no one right answer to picking a strike.
It comes down to our Why.
Am I selling the put because I just want to keep the premium, with no intention of taking on the stock? If so, then selling at a strike below a significant support level often feels like the right move to me.
Am I selling the put because I'd actually like to own the stock, but at a better price? In that case, I'd want to identify the level at which I'd be happy to be an owner of the stock and sell that strike.
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Trade 'em Well,
Sean McLaughlin
Chief Options Strategist
All Star Charts, Technical Analysis Research