Most investors know which stocks they’d like to own. The harder part is deciding when, and at what price, to buy them.Buy too soon, and you risk overpaying. Wait too long, and the opportunity may pass you by.The “BOGO Strategy” offers another approach: potentially collecting income while you wait for a stock to reach a price you’d actually be comfortable paying.The name comes from the same idea behind a grocery-store BOGO sale: getting something you already want at a more attractive price.Imagine you’ve been watching a stock that’s trading at $100.You like the company. You just don’t like the price.So, instead of buying the shares today (or placing a limit order and hoping they eventually decline) you can sell a put option at the price where you’d actually be willing to become a shareholder. In exchange, you collect cash (the premium) upfront.From there, one of two things can happen:
Scenario #1: The stock never falls to your target price. The option expires worthless, and you keep the premium you collected.
Scenario #2: The stock declines to your chosen price. You may be assigned the shares, but you’re buying a company you already wanted to own at a price you decided made sense.
