Put Selling Checklist
Use this checklist immediately before trade execution. It is designed to reduce beginner mistakes by forcing one consistent decision path.
What you will learn in 30 seconds
- How to run a final setup, contract, and portfolio quality check.
- How to distinguish pass vs fail signals before execution.
- How to stop low-quality trades even when premium looks attractive.
Pre-trade checklist
Run all checkpoints in order. If one critical checkpoint fails, pause the trade.
| Checkpoint | Pass Signal | Fail Signal | Action |
|---|---|---|---|
| Underlying quality | You are willing to own the stock after assignment. | You would avoid owning this stock in a drawdown. | Reject setup and move to next candidate. |
| Delta + BE context | Delta profile and BE Distance align with your risk profile. | Delta is too aggressive or cushion context is too weak. | Compare conservative alternative before approval. |
| Liquidity quality | Spread/activity context supports stable execution. | Liquidity warning or weak fill context. | Reject or downgrade to advanced-only watchlist. |
| Warning profile | No unresolved critical warning. | Multiple unresolved warnings. | Pause trade and validate warning impact in Analyzer. |
| Portfolio fit | Position keeps ticker/sector concentration in range. | Trade breaks concentration or capital guardrails. | Reject and rebalance candidate set. |
Checklist examples
Example A: One failed checkpoint blocks execution
Setup: All checks pass except portfolio concentration, which turns sector overweight.
Interpretation: One critical fail is enough to stop the trade.
Next Step: Drop candidate and select next-best contract from another sector.
Example B: Premium is strong, but liquidity fails
Setup: Premium looks excellent, but spread and warning context fail liquidity checkpoint.
Interpretation: Execution-quality failure can negate premium advantage.
Next Step: Reject or postpone until contract quality improves.
Common checklist mistakes
- Skipping checklist when a candidate looks obviously attractive.
- Treating checklist as optional after Analyzer approval.
- Ignoring one failed checkpoint because others look strong.
- Changing checklist logic trade by trade.
Execution sequence
- Step 1Run checklist in fixed order.
- Step 2If a critical fail appears, stop and replace candidate.
- Step 3If all pass, validate final details in Analyzer Engine.
- Step 4Confirm portfolio fit and execute.