Actually the strategy rruff was talking about is quite conservative. I often sell out-of-the-money puts on stocks I would like to own at a cheaper price anyway. If the stock doesn't fall, I collect the premium. If it does fall, I get the stock put to me at a better price than had I bought originally.
Usually I do this on stocks on which I already have a position, and want to add at a cheaper price. I'm such a cheapskate!
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