🔴HUGE retail trap with selling options.

Most people focus VERY hard on cash flow every single month.

& I get it, ppl plan to live off the money and it just feels better for monthly cash flow.

But here's the problem, you are prob picking 10 of your "favorite companies" that have high implied volatility that are the meme stocks so you can get "more premium"

What often happens is you go and sell your cash secured puts and start seeing the cash flow as the market chugs along higher.

Then BAM!
The market falls and you get assigned on all of these short duration contracts. You try to sell CCs to get out of the shares, but the market is falling & you can't.

Then the SP500 falls 30% & these companies you are holding the bag on in the dip will prob be down well over 50%.

You didn't get in at a good valuation, they prob don't have a moat, & you prob are not ok to hold them for the long run...
(you are just here for the cash flow, you don't care about the company, but now you do since you got assigned all these dang shares!)

Meanwhile, the person that bought the SP500 and did nothing in that time frame would likely have a much higher total return then you.

My point here is this.
You likely did more work for less ROI.
Don't focus so hard on yield.
Focus on total return & ensure you can survive a 40% crash, because it will happen at some point.
Who's to say it can't happen right now.

There is a time and place to sell puts & I sell a lot of portfolio secured puts (not cash secured)

But I only do it with 1+ year expiration dates on great companies at good prices while always keeping ratios in check to manage a 50% crash.

It's simple.
But it works.