Cash secured puts on bearish stocks for weekly income

Summary

• The post proposes a strategy of selling weekly cash-secured puts (CSPs) on stocks that have recently experienced a significant price drop (+5%) into a strong support area.
• The author's thesis is that selling a CSP with a strike price just below this support level offers a favorable risk/reward profile. They argue that the stock is likely to consolidate after a large drop, reducing the immediate risk of further significant downside compared to selling puts on stocks that have just rallied strongly.
• Quality assessment: This is a speculative trading strategy discussion, not well-researched DD. It's based on a general technical analysis concept (support and consolidation) rather than fundamental analysis of any specific company.