selling puts only really makes sense if you care about intrinsic value?
u/Jaded-Suggestion-827 ·
Reddit — r/ValueInvesting
· March 21, 2026 at 15:29
· ⬆ 15 pts
· 💬 33 comments
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AI Summary
Summary
The author argues that selling put options should be based on a company's intrinsic value rather than purely chasing high implied volatility (IV) premiums.
They advocate for using put selling as a strategic entry method to acquire shares of businesses you actually want to own at a fair or undervalued price.
Quality assessment: Conceptual discussion and strategy philosophy; no specific stock DD or actionable market speculation.
Score15
Comments33
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a lot of the options stuff i see is very IV focused. like if vol is high, sell puts, collect premium, etc. which is fine if you’re treating it purely as a trade
but if you’re selling puts on individual companies, you’re kind of agreeing to buy the business at that price whether you say it out loud or not
so then it feels weird to ignore valuation completely
like two stocks can both have high IV and look “good” to sell puts on, but one might be somewhere near fair value and the other is still obviously expensive
if both drop and you get assigned, those are very different outcomes even though the trade looked the same going in
lately i’ve been doing a very rough intrinsic value check before even looking at premiums. nothing detailed, just trying to answer “would i actually want to own this at the strike or not”
if the answer is no, then the premium probably isn’t worth it
curious how people here think about it do you see selling puts as just a separate strategy, or basically a way to enter positions in stuff you already think is undervalued?