selling naked puts and writing covered calls stock options blog
Written on Apr, 05, 2014 by in , , | Comments Off

The chart below shows the daily prices for the past six months on the S&P 500 index (SPX) after the index closed at 1,865.09 on Friday, April 4, 2014. The S&P 500 began Friday morning by hitting a new all-time high in the first few minutes of trading.  After a couple of failed attempts, the bears finally took control and …

Continue Reading...
Written on Apr, 03, 2014 by in , | Comments Off

I wrote recently that I had a limit order in place to close my far out-of-the-money UWM April $72 puts.  Well, the order expired before I found a taker on the other side of the trade.  By then, I decided UWM wasn’t worth closing for 10 cents and changed my order to close if I could buy it back for …

Continue Reading...
Written on Mar, 23, 2014 by in , , | Comments Off

I charted the daily prices for the past six months on the Dow Jones Industrial Average ($DJIA, $INDU, $DJI, the Dow) after the index closed for the week at 16,302.77 on Friday, March 21, 2014. The DJIA is still slightly below its 2013 closing level, but up from its dip that ended in early February.  As always, the question comes back …

Continue Reading...
Written on Mar, 21, 2014 by in , | Comments Off

Almost two and a half months ago, I mentioned that I was considering a bullish spread on XLF, the Financial Select Sector Spider.  It was trading around $22.00 that day.  Before I placed an order over the next week, it started to falter and fell more than $1.50 from its high.  I stopped following it as closely during that slide …

Continue Reading...
Written on Mar, 18, 2014 by in , | Comments Off

Ford (F) hasn’t quite behaved like I expected it to yet, but I still see some potential left in it or at least a good way to make money if it doesn’t sink much more.  F fell as low as $14.41 at the beginning of February and I figured I’d be forced into taking a loss or buying it at …

Continue Reading...
Written on Feb, 24, 2014 by in , | Comments Off

I’d be a happy man if this year could continue acting the way it has started the year so far.  My account is up and the market is essentially flat.  If we don’t see a good correction, we need an extended sideways consolidation period at least.  Some 5-7% mini-corrections sprinkled in will help keep volatility off its lows and will …

Continue Reading...