Over the weekend I asked myself what I'd consider to be a superb bargain price at which to buy LINE in my regular account, even with the dreaded K-1s plus the fed forms and quite different Calif. forms upon sale. So I chose 32, which would mean 9% interest on my 3.25% margin cost. So instead of just selling puts as a speculation with no desire to buy the units, I considered them in the more traditional light as a bonus payment for an irresistible entry point. And, if by April 20, LINE doesn't drop to 32 or lower (which I'd be astonished to see happen, especially when there'll be expectation of an April dist. increase), well, there's the "bonus" money in my pocket. So I sold 55 of the April 32s for .70 today. An excellent price, I think, that others who agree with me might wish to consider.
Don't understand about selling options, either I see.
Did you not notice that he said "which I'd be astonished to see happen"?
He is assuming it will not get that low and gets to keep the premium as 'free money'.
I get one third of my portfolio income from doing this.