[sgbuffett]

This strategy is called cash covered put strategy which consists of 2 parts

1. You sell out of money puts at a strike price you are willing to buy the stock

2 You set aside enough money to buy the stock should it fall below the strike price.

This is a highly problematic options strategy taught in options trading course and highly dangerous.

Because it upfront commit you to buy at stock at a target price in the future ...without knowing future developments in the company.

Any company no matter how good can have mishaps that cause sharp falls in the stock price and you lose your flexibility of not buying the stock...no matter what news pop up. Imagine you play this strategy ...company discovered some.qccounting mistakes or theft or major customer collapse.....you end up buying the stock under such circumstances. No company is always good to buy...all sorts of things happen to companies...even Apple can have big negative surprises.

That is the problem.with many options strategy ....it commits you to a future you do not know and you can get killed by it.

In the early part of the video Chicken Genius say it is impossible for Tesla to be below $1000 (after split $333) now it is $107.....60% below