I do use this for mostly blue chips.
But I just looked into selling puts on JNUG a 3x leveraged index stock.
Like I could sell 35 day puts with an at the money 13.50 strike for 80 cents. That is like a 5.9 percent yield annualized to 59 percent. If it gets put to me at that price 12.70 I would not mind and if it does not move up I get a good return on my money and if it moves up I get to capture the move by buying it back sooner than 35 days an even higher return on my money. I would set my stop loss at .75 of 12.70 to avoid disaster.
Like why not?
Anyone have any caveats?
Seems to me these leveraged stocks have a higher premium than the blue chips I usually buy. Typical yield for them is in the 20 to 25 percent per year range.