Know the obligation
Selling one put contract can create an obligation to buy 100 shares at the strike price. The required cash should be understood and set aside before entering the position.
Start with the stock
Ask whether you would be comfortable owning the shares at the strike price. Premium alone is not a reason to sell a put on a company or ETF you do not want to hold.
Understand assignment
If the option is assigned, you receive the shares and use the cash you reserved. Assignment is part of the structure—not a surprise to be ignored.
Keep the risk visible
The underlying can fall substantially. The premium collected only offsets a portion of that loss. Position size, time to expiration, and overall exposure still matter.