I mostly sell puts to collect premiums and buy the underlying at a lower price if I believe in its long-term up trajectory. But im getting rid of owning underlyings altogether as they tie up too much capital AND be right on my bullish assumption. The only time I would buy naked put (or debit put spread) is near earnings when volatility is high and bound to contract days after. This is an assumption that bad news are coming and the underlying stock would experience a sudden sell off. But what about good news and the stock experiences heavy buying? You could straddle it by buying both put and call near the money hoping for an immediate movement up or down from the high volatility.
Oh to stay on topic, I protect my money by not owning anything.
