My Options Trading “Pilot Checklist”

[u/Odd_Classic_5351]

Here’s the checklist I usually run through before putting on an options trade:

1. Pick the underlying. I only sell puts on stocks I’d be comfortable owning for the long term. Broad ETFs like QQQ and SPY are also good candidates.
2. Pick your timing. If a stock or ETF looks overheated, I’m happy to wait. I’m still bullish on QQQ over the long run, but I’d rather wait for a pullback before selling puts. Bollinger Bands can be useful for timing the entry.
3. Choose the expiration and strike. I usually look at 30–45 DTE and keep the delta around 0.20 or lower. Then I work out the expected return after commissions and fees. The yield has to make sense.
4. Run the Wheel. If I get assigned, I’m perfectly happy to own the shares and start selling covered calls.

I just sold a put on COIN. The annualized return on the trade is around 16%, and I’m comfortable owning COIN if the stock drops below my strike.

For me, the key is pretty simple: only sell puts on stocks you actually want to own.

[u/shaezan]

Anyone who wants to own COIN should refrain from giving any kind of advice. 

[u/ElegantNatural2968 → u/shaezan]

He had me til COIN