Part 8/10:
He also introduces the idea of annualized returns—by calculating returns over the period, traders can assess if the premiums justify holding the position, especially when factoring in margin requirements. For example, a $50 strike on Palantir might yield a ~17% annualized return if the stock remains above the strike at expiration.
Practical Resources for Stock Selection
Finding quality stocks suitable for put selling can be facilitated through several online tools:
CNBC and BarChart: Filter stocks by price and view their component lists, such as the Dow 30 or S&P 500.
Dividend Champions List (dripinvesting.org): Focuses on companies with a long history of dividend increases, signaling stability.