 Have you ever heard the saying penny wise and pound foolish? Have you ever heard the saying? The squeeze the juice has to be worth the squeeze Well selling puts on PayPal might be that scenario The puts on PayPal are not very juicy and And my argument is they're not worth selling you you might be better off buying the stock first Jumping over to seeking alpha If you look at seeking alpha PayPal has a forward PE of 12 That gives it essentially an earnings yield of 8% it's like buying a house that makes 8% But even better than that It's supposed to grow between 13 and almost 20% a year Do you know what that'll do over a decade? punch it in a calculator if If it's 20% growth rule of 72 it'll double every three to four years If the multiple improves or if the economy gets more optimistic or investors get more optimistic on PayPal The multiple will change making it more valuable So imagine selling the puts making a little bit of money, and then this thing goes up Doubles triples quadruples, whatever it does something fantastic over the next ten years Here are the puts for about a year on PayPal If you sell the the at-the-money put on a hundred shares You're gonna get about a hundred or seven hundred bucks a little more than ten percent But you have to stay in that put For up to a year or get assigned or close it early But you're gonna be committed for about for a year, and it's a little more than ten percent But the earnings yield on PayPal is almost the same amount Which one should you do should you do in my experience? That one doesn't make a lot of sense So I wouldn't want to make only 10% There's a lot of investors who trade options and they're targeting like 20% if you did a covered call You'd make a little a little something like 15% because there's more interest in the calls But you same thing you give up the upside if If it goes in your favor and you sell the put you get 10 11% But then this this thing doubles and triples later on That's what you that's what you're facing so Let me know if you would sell this put or If you agree with me that it might be better just to buy a quality company that earns well and can grow in the future Cheers