We have traditionally put in "good for day" limit orders when purchasing stock we are targeting for long term hold.

Recently though, we've started using options and buying puts targeting our strike price.

We find two problems with this though and wonder what others experiences have been:

1 - Obviously, If the stock tanks well below our target price over night, we aren't protected with the open option order to change the price we enter at.

2 - While the premium is a bonus, in most cases we are putting in the order because we like the stock. If the option is never called, we may miss owing a stock we like at attractive prices.

Does anyone have first hand horror stories on writing naked puts that should scare us away from our strategy?

edit: We incorrectly thought what we were doing in our OP was considered "naked put", but have been corrected that it's cash-covered puts when we do this.