selling naked puts and writing covered calls stock options blog
Written on Oct, 29, 2014 by in , | Leave a comment

As I mentioned in my update yesterday, I was under-invested and felt the need to add some more risk and upside potential to my account.  My small and mid-cap allocation in ETFs takes up roughly 27% and 24% of my account respectfully.  I have no large-cap or international ETFs in my account, but I have some large individual stocks to balance …

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Written on Oct, 28, 2014 by in | Leave a comment

Disney ($DIS) is almost back up to my entry point at $90 and I decided to go ahead and plan my exit.  While DIS was trading at $89.16, I sold one DIS December $92.50 covered call for $1.01 and received $100.51 after paying $0.49 in commission.  If DIS breaks high above $93.50, I might second-guess my decision.  I decided to …

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Written on Oct, 24, 2014 by in , | 2 Comments.

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 , | Comments Off

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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