I have been reading about selling put options as a good alternative for buying a stock that you feel is priced too high. For example, I am interested in Shopify, but not at today's closing price of $86.90. However, I would be willing to buy 100 shares of Shopify at $75. I could put in a regular 60 day buy order at $75 and sit around waiting for the stock to drop that far, which may never happen. Or I could sell one October put option at around $5.70 and put about $570 (less commissions) in my pocket immediately. If Shopify drops to $75 or lower before October 20, then I will be required to buy 100 shares for $7,500. But if Shopify does not drop to $75 before October 20, then I get to keep the $570. Also, Shopify would need to drop below $70 for me to take a loss, because at $70 I could sell the stock at a loss of around $5 per share, which is what I already pocketed from selling the put option. This seems almost too good to be true. I realize that I could take a huge hit if the stock were to drop much below $70, but compared with an outright purchase this seems a lot safer. I also realize that if Shopify goes to $200, this strategy would not be nearly as good as buying the stock, but keeping the $570 would still not be a bad thing, especially if I could do it over and over. Thoughts? Is anyone here using this strategy?