Luther was much more spiritually mature than the average professing Christian. He was giving counsel to a goody-two-shoes Pharisee/legalist who didn't think he was all that bad, and didn't reeeally think he had much of which to repent.
Luther (tongue-in-cheek) told him to go out and do something "reeeeeeeeally bad" so that he would have something to repent of.
Here's a few more gems from Luther:
"I cannot forbid a person to marry several wives, for it does not contradict the Scripture."
"Libidinousness cannot be cured by anything, not even by marriage; for the greater part of the married live in adultery."
It is time for the husband to say to her: 'If you don't want to, another does;' if the wife is unwilling, let the servant-girl come.
I am inflamed with carnal pleasure, while I ought to be fervent in spirit. I am on fire with the great flame of my unbridled flesh and sit here in leizure and laziness, neglecting prayer.
Women must be used either for marriage or for whoredom.
If women breed themselves sick and eventually to death, that does no harm; let them breed themselves to death; that is what they are for.