• if I get assigned then I end up buying the stock at the exercise price, which would be worse (higher) than the /then-prevailing/ price, but still better than buying it at today’s (even higher) price.
• comparable to non-cancellable limit-buy order
• need to earmark enough cash collateral

https://www.lynalden.com/selling-put-options/ has details about this strategy but tcost too high.

What type of stock?

• I will only try a penny stock since the contract is for 100 shares.
• div yield
• given the probability of a collapse (of the stock), we should only pick blue chips
• Consider LYG — $1 Mar selling for .03/share or $3/contract, but am I ready to buy 100 shares of LYG?
• shortest maturity