Hi,
My philosophy of put writing is based on the belief that fear has a limit but greed has none.I don't write put options all the time just to be in the market, but write them only whenever the premiums justify the risk.I believe in waiting to get the price i want to buy and get paid in the process rather than just buying on the spot.I use only ITM (In The Money) options if at all i want to buy/sell rather than futures as they give the leverage and risk management.
Rules for my trading:
1. I use MACD (12,26,9) and RSI(14) for identifying the strikes to write options
2. Prefer writing options at the start of trend identified using crossovers of +DI and -DI in ADX(14)
3. Identify oversold conditions during downtrends using above indicators to find great trades to profit from large IV (Implied volatility) of put options
4. I use only Hourly and daily charts and 5 min charts of last one hour of trading to see the setup of next day.
5. My trading style doesn't generate many signals and i am happy to rollover my positions to next month if i am struck with unexpected loss below my strike price.