That's at the heart of a put selling strategy, where the goal is to acquire the stock at a discount from current market prices. After a long uptrend, price can flatten out for several months before marching higher. This gives the trader the chance to book income by selling each month as she attempts to have the market "put" the stock to her at a lower price. With earnings season on the horizon and implied volatility increasing as a result of the uncertainty associated with quarterly earnings reports, inflated option prices make selling a more attractive strategy than buying when making a directional bet.
Because our capital is not riding on the performance of any one company during earnings season (which can result in huge moves when quarterly reports deviate from analyst consensus expectations) put selling risk is diversified and gives us the chance to acquire TAN at below-market prices without losing sleep at night. The Chaikin Very Bullish Power Gauge is another important comfort-inducing metric, since fundamentals contribute to the overall PG rating, A very bullish rating implies that Solar Companies are priced reasonably with expectations for future net earnings growth and cash flow. I'll walk through the process during our trading meeting, and we'll discover together whether selling out of the money puts on TAN.