An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their outlook on a specific asset was bearish.
We explain why selling cash-covered puts and covered calls are relatively safe choices for earning a high income. We will discuss how to formulate a sustainable and repeatable options income strategy.
Covered call ETFs have exploded in popularity. The strategy of writing covered calls is not optimal for income generation. Writing puts or using 0DTE call strategies should produce better results.