Advanced Micro Devices Inc (AMD)

[Elmer Phud]

Alan -

Therefore, to make money on options requires you to be "smarter" than the market. To make money on stocks requires you to be simply average.

These 2 statements are in conflict. If the average investor makes money in stocks then the long term trend must be up. If an options trader writes puts against a long term uptrend then he must benefit from the upward movement. The times where the market turns down and the put writer is assigned or otherwise closes his position can be viewed as dollar cost averaging. I see put writing as a useful strategy in a depressed market because I want to be buying anyway. Choose your stocks. Write puts against a company you are willing to own at the strike price.