Writing puts is a good way to buy stocks you’re interested in obtaining. You get a monthly income and worst-case scenario you obtain the stocks.The last year I've been writing a good amount of SPY puts (and making nice money along the way) but never buying any. Very strongly considering rolling a portion of my profits into the 390 put. A correction of the S&P down to 3500 or lower is a real possibility.
The trade you’re doing is profitable until a heavy market move occurs and you can get wiped (Losing 50%) by having to buy SPY.
Now we might get a new mask mandate, new variant who might push more government closing down the economy...
I prefer to write covered calls on stocks I don’t want to sell. So I don’t mind if they go lower.
Also I write puts on stocks I want to buy.