Buying a put option happens when market is going down. Correct. If that is true then when should one sell put option ?
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When market is going up?– user19035Commented Nov 24, 2021 at 14:18
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Do you mean selling to close a position or selling a "short" put?– D StanleyCommented Nov 24, 2021 at 14:35
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premiums are juiciest when the market is going down, so that's when I sell puts, personally. It depends on your outlook/goals.– Hart COCommented Nov 24, 2021 at 14:49
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@AxiomaticNexus, market going up would be a good case for buying call option ?– nishCommented Nov 25, 2021 at 5:47
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1 Answer
AFAIC, one should sell short puts when one is willing to acquire the stock at the strike price less the premium received. Otherwise, you might be asking for trouble.
answered Nov 24, 2021 at 4:28
