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Using Put options as limit buy

Scenario 1: Good for 60 day limit buy for 100 shares at -2% current value.

Scenario 2: Write a put option expiring in 60 days at a strike price of -2% current value.

My understanding is that, assuming you actually want the shares, scenario 2 will 100% always be better than 1. Is that correct, or do I have something wrong? Why would anyone ever make limit buy orders instead of just selling contracts?

The only advantage I can see for #1 is that you can cancel the limit order without loss whereas buying the contract back can cost more; however if you’re committed to actually going through with the purchase then worst case the option executes and you buy shares at the strike price you want, but the cherry on top is you get the premium for the contract itself.

Using Put options as limit buy – RobinHood – Reddit Feed

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