I do this consistently and look at it exactly the same way as you and @boilermaker75 ... selling insurance. I'll usually do it with a company that I either already own and am looking to add to, or one that I'm looking to start a new position in but maybe some unrelated news, market sentiment or whatever has been lifting the general market up as a whole. Rather than wait on the sidelines for a pull back that may or may not come anytime soon, I sell insurance on the company and collect the premiums, which alone can actually create a pretty good return.
One thing I'll add is that if there is a modest decline, rather than be put the shares, I'll usually just roll the put out and collect the premium again. Now if there's a large decline where there's not enough premium to make it worth doing again, I'll let it be exercised and most likely be buying even more shares in addition as that's really the ideal opportunity I was waiting for to begin with
