This strategy is referred to as theta gang in /r/WSB nomenclature, but I would argue this is different because it's meta-gaming other people who are foolish enough to buy those wild out of the money options.
It's an old strategy. Without an actual edge and significant (read: sophisticated and costly) risk management, that strategy will eventually get blown out by someone who is better at pricing long tail risk events than the seller. There's a reason market makers obsessively delta hedge.
Would hate to have been selling put options on VIAC when Archegos shit the bed on $20B with >4x leverage. Good luck foreseeing that.
yes, I have had this happen with a biotech stock. The puts can be very risky. I usually sell calls since it is easier to stomach psychologically when it goes wrong.... "I missed out on some gains. But I would've sold anyway..."
This is my preferred strategy as well.