selling naked puts and writing covered calls stock options blog
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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Written on May, 30, 2014 by in , | Comments Off

More than a week ago, I entered a limit order to close my Disney (DIS) naked put for June.  It was more than $5 out-0f-the-money (OTM) and was getting pretty cheap for as long as it had remaining before expiration.  Finally, my order hit this morning.  While DIS was trading at $84.01, I bought to close my one DIS June …

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Written on May, 21, 2014 by in , | 1 Comment.

A few months ago, I received a free copy of Donna Skeels Cygan’s book, The Joy of Financial Security.  I don’t review many books and when I do, I make it a point not to let the fact that I received it at no cost influence my opinion.  I don’t make it through more than a few chapters in some …

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