Futures
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Before selling a single put, every one of these has to pass.
If anything fails... skip it.
1. Is the stock trading below intrinsic value?
If it is not cheap by some measure, the put does not get sold.
2. Does it have a moat & pricing power?
Can it raise prices without losing customers?
Can competition easily replicate it?
3. Is EPS growing?
Profits drive stock prices long term.
No EPS growth — no interest.
4. Would I be fine holding the shares long term if assigned?
If the answer is no, the put should never have been sold in the first place.
5. Are my ratios in check for a 50% market drop?
Can every assignment be taken without a margin call even in a worst case?
If not — pass.
Most setups get rejected.
The ones that pass all 5 get full conviction.
Patience on the front end is the whole edge.