Earlier quoted context omitted.
> The vast majority of people should buy a 20-30% dip, and so the fact that 99% of the time you're not going to be assigned means that it's a good idea in most scenarios. So "people should buy a 20-30% dip" but should not be invested already? Because if they are, selling puts may not be a good idea.
I think what he is suggesting is that historically buying after a 20% or more sell-off leads to outsized gains in the US market. That does not preculde already being invested as sitting on the sidelines waiting for such a move can be self defeating (the market rises 50% then drops 30% dramatically you would still be better off to have bought day one). If you sell puts and are assigned, it may or may not happen at the…
It may make sense if you had dry powder waiting for a correction. But at that point you are forced to buy (and as you say it may be at a higher price that the prevailing one in the market). You get premiums but you lose flexibility.