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3 Premium Naked Puts for Substantial Income

Big premiums for these naked puts, with moderate risk.

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One of the best ways to keep your eyes open for selling naked puts and covered calls for high premiums is to simply keep a list of stocks. How exactly you build that list is up to you, but my suggestion is to follow a lot of sectors and keep an eye on those stocks with decent volatility but also have solid underlying businesses.

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I tend to avoid screens because I don’t want to sell naked puts or covered calls on just any stock that happens to have a good premium. Especially with naked puts, I may end up having the stock put to me, so it better be a stock I wouldn’t mind holding. That’s why I also try to narrow the list to stocks I think are undervalued or, at least, fairly-valued.

These tend to be small or midcap stocks with good growth projections, although the occasional large-cap may slip in there. The smaller stocks are better because large caps don’t move with as much volatility so naked put premiums are smaller.

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