selling naked puts and writing covered calls stock options blog
Written on Oct, 24, 2014 by in , | Leave a comment

This was a good week in general for my account.  Everything I owned improved, except for my BA put, but I’m not worried about it long-term.  Yahoo jumped high enough to make my November options extremely cheap, so I decided to close them today.  While YHOO was trading at $43.01, I bought to close three YHOO November $37 naked puts …

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Written on Oct, 16, 2014 by in , | Leave a comment

TLT started to dip into negative territory this morning after running as high as $124.13 at the open (and $127.68 at yesterday’s open).  Like any rally in stocks lately, any weakness in bonds tends to be met with a reversal before long.  I took this opportunity to cut my losses this morning and closed my weekly TLT put spread.  While TLT …

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Written on Oct, 13, 2014 by in | 2 Comments.

Europe has been showing signs of weakening for a while and I should’ve reacted quicker.  This morning I capitulated and sold my 200 shares of FEZ for $37.10.  I received $7,418.84 after paying $1.16 in commission.  FEZ was up for the day and I thought I should cut my losses on an up day.  I pulled the trigger when I saw …

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Written on Oct, 10, 2014 by in , | 2 Comments.

The TLT October 10 $117/117.50 put spreads that I sold last week expire this afternoon and look like it will finish far out-of-the-money.  This move against me will give me a realized loss of $79.74 (on top of the realized loss of $51.24 I took last week on my first TLT spread). Since I won’t be at my desk at …

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Written on Oct, 04, 2014 by in , , | Comments Off

The chart below shows the daily prices for the year-to-date on the S&P 500 index ($SPX) after the index closed the week at 1,967.90 on October 3, 2014. The S&P 500 marked an all-time high of 2,019 on September 19.  This peak coincided with its trend line of higher highs and acted as resistance to further gains.  The following day, SPX fell below its …

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Written on Oct, 03, 2014 by in , | Comments Off

I learned a good lesson today as I messed around with TLT put spreads.  When the monthly jobs’ data beat expectations, I thought TLT would drop based on the belief that it was more likely the Fed would raise rates sooner than later.  At first, the market agreed with me and TLT sank as low as $116.82.  As I saw my …

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Written on Oct, 02, 2014 by in , | 2 Comments.

I’ve been watching UWM as the Russell 2000 index worked through its decline.  Before today, I had two UWM October $75 puts and two UWM October $73 puts.  I sold these puts when the strikes were far out-of-the-money in June and July respectfully.  Yesterday, the $75 strike puts moved in-the-money and today the $73 strike puts moved in-the-money briefly.  Since I …

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Written on Oct, 01, 2014 by in , | Comments Off

After I wrote my month end summary this morning, I thought I was finished writing for the day.  Then, over a span of nine seconds, two of my limit orders hit when stocks were near their lows of the day.  I forgot that I entered my YHOO order as a “Good-til-Canceled” limit order, but that could be a good thing …

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