One strategy that people usually find very attractive is the selling of naked put options. The strategy consists in selling a put option at level that you consider a good point of entry and until that price is reached you get the payment to wait.
This seems good, especially when you are speaking about good stocks. The main problem is that for you to achieve a good premium on the sold option, you have to get close to the actual trading price, which usually isn’t the strike you are planning to buy when you evaluate the trade.
One of the solutions for this strategy is to staggering the options.
So if you sell an option far away in time, you might get the premium you were willing to get, as well as the perfect strike price.
What happens now is that you are too far in time.
In order to solve this issue, you can sell a 3 month option today, a new 3 month in the next month and a new 3 month after that.
After a while, you will have your options expiring monthly, as if you were selling the front month.
The first three months will be boring, but after that you get a cash cow.
Selling a put option has the same chart of a covered call.
Note: Options are risky and you should read Characteristics and Risks of Standardized Options and Supplements.
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