selling naked puts and writing covered calls stock options blog
Written on Jul, 18, 2014 by in , | Leave a comment

I’ve been using a steady plan of dumping far out-0f-the-money (OTM) naked puts once they got cheap enough and was planning to stick to that with my July UWM positions.  Instead, UWM moved so much higher so quickly, that I didn’t react when the option prices first dropped and then I figured they were so far OTM that the risk …

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Written on Jul, 16, 2014 by in , | 3 Comments.

It has been more than a year since I made a trade on Apple (AAPL) and that changed today.  I was excited when AAPL shares split 7-for-1 early last month because I knew I’d be able to get back in with options without putting up $40-50,000.  I didn’t jump on the options last month because I was curious how the …

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Written on Jul, 15, 2014 by in , | Leave a comment

Not quite a month ago, I closed my XLF June $23 naked puts while XLF was trading at $22.83.  It was the right trade to make because XLF retreated to $22.47 as recently as late last week.  However, the Financial Sector ETF rebounded yesterday and had a follow through day today as JP Morgan and Goldman Sachs (two of the ETF’s …

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Written on Jul, 06, 2014 by in | 1 Comment.

The chart below shows the weekly prices for the past two and a half years on the S&P 500 index ($SPX) after the index closed the week at 1,985.44 on July 3, 2014. The S&P 500 reached an all-time closing high on Thursday to finish a holiday-shortened week on the back of a positive employment report in the morning.  Reaching new …

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Written on Jun, 24, 2014 by in , | Comments Off

The limit order for my lower MDY naked put that I entered on option expiration Friday hit today.  While MDY was trading at $259.76, I bought to close one MDY September $260 naked put for $7.00 and paid $700.24 including $0.24 in commission. This was a straightforward reduction of risk trade.  As I mentioned in my last update, I sold …

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Written on Jun, 20, 2014 by in , | 2 Comments.

I only had one option set to expire today and I decided to buy it back before the shares were assigned.  While XLF was trading at $22.83, I bought to close three XLF June $23 naked puts for $0.18 and paid $55.26 including $1.26 in commission.  Three months ago I sold these puts in-the-money for $1.00 each and received $298.79.  This …

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Written on Jun, 12, 2014 by in , | 2 Comments.

Coming into today, I had options on four different UWM July strikes, three of them short and one long as a hedge.  I was long two UWM July $75 puts and still am.  I was short two UWM July $70, $71 and $77 puts.  I kept the $71 and $77 naked puts, but rolled the cheapest.  While UWM was trading …

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Written on Jun, 06, 2014 by in , | 2 Comments.

I knew it was time to move my June MDY exposure out to a farther month and as I mentioned in my month end summary a few days ago, I planned to move the strike higher too.  By the time I got around to placing the order today, the $250 strikes offered a pitiful return.  The $255 strikes weren’t too …

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