selling naked puts and writing covered calls stock options blog
Written on Sep, 29, 2014 by in | 1 Comment.

Options on Alibaba (BABA) started trading today and I decided to jump in while the volatility was still high and the option premiums are rich.  While BABA was trading at $89.04, I sold one November $80 naked put for $1.76 and received $175.21 after paying $0.79 in commission.  I should’ve made my trade earlier in the morning when BABA was trading …

Continue Reading...
Written on Sep, 16, 2014 by in , | Comments Off

Only about 22 minutes of open trading time passed between when I wrote that I had an order in place to roll my MDY put from September to December to when my order hit.  The time span happened to carry from the market close yesterday to today and I’m glad I got the order in and hope it was the …

Continue Reading...
Written on Sep, 15, 2014 by in , | Comments Off

While FEZ was trading at $40.92, I bought to close my two FEZ September $40 naked puts for $0.10 each and paid $21.58 including $1.58 in commission.  I entered this order late last week and it hit in the first three minutes of trading today.  The same contract ended up trading as high as $0.20 today, so as far as …

Continue Reading...
Written on Sep, 08, 2014 by in , | Comments Off

Sometimes, I make good trades and sometimes I make bad trades.  I rarely know which it’ll be within the first week after the trade.  I made a new trade today that I’ll be wondering about for weeks to come, but I think I made the right decision.  While BA was trading at $126.82, I sold one BA November $125 naked put …

Continue Reading...
Written on Aug, 25, 2014 by in , | 9 Comments.

After getting the suggestion from a reader in comments section of my last post, I started looking at YHOO this morning.  The stock has a forward P/E ratio greater than 28 and has a lot of change on the horizon.  Part of that change is causing the misleading P/E ratio.  Alibaba is scheduled to go public soon and YHOO will …

Continue Reading...
Written on Aug, 21, 2014 by in , | 2 Comments.

I’ve been thinking about closing my SPY October $160/180 vertical put spread for more than a week.  SPY recovered nicely from its recent decline and I didn’t feel like it was giving me the protection I wanted.  With the long puts being nearly 10% out-of-the-money, I don’t think I was protecting much.  I don’t expect to see a correction of more …

Continue Reading...
Written on Aug, 15, 2014 by in , | 8 Comments.

Sideways moving markets can be great for option sellers and can be somewhat boring sometimes too.  Option sellers have the advantage of making a profit (or a reduced loss) in a sideways (or slightly down) market if the premiums were traded at the right time and strike.  I haven’t made a trade this month because I wanted to see how …

Continue Reading...