selling naked puts and writing covered calls stock options blog
Written on Apr, 23, 2015 by in , | Leave a comment

The S&P 500 has pushed to new highs and once again brushed off its recent minor slump.  After April’s option expiration, I was left under-invested and needed to get some more skin in the game.  My account balance has still been growing, thanks to TLT, but I knew I was missing out on more gains by leaving cash idle.  Since …

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Written on Apr, 17, 2015 by in , | Leave a comment

After a few days of thinning my holdings this week, I came into options expiration day with only one April option position remaining.  My three TLT April $134 calls will expire worthless, about $2.60 out of the money.  This trade gives me a realized gain of $312.99. I mentioned yesterday that I planned to sell more TLT naked calls to …

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Written on Apr, 16, 2015 by in , | Leave a comment

A couple of days ago, I mentioned my plan to stay patient and wait for my new trade on TLT.  Yesterday, TLT started to improve for me and today I pulled the trigger.  While TLT was trading at $129.88, I bought to close seven TLT April $128 puts and sold to open seven TLT May $128 puts for net $1.23 …

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Written on Apr, 15, 2015 by in , | Leave a comment

I closed out two sets of April options this morning with limit orders as the market moved higher.  My XOM April $85/90 put spread was down more than $250 not long ago, but I let it run in case oil recovered by the end of this week.  I sold the spread for $192.81 (net after commission) at the end of February, …

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Written on Apr, 14, 2015 by in , | Leave a comment

We spent most of last week in New York (Manhattan) for spring break.  It felt good to get back at my desk and find some normalcy in my daily routine yesterday.  I made it back to my account this morning and rolled a couple of options that were set to expire this coming Friday.  I had nearly all of the …

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Written on Apr, 04, 2015 by in , , | 2 Comments.

The chart below shows the daily prices for the past year on SPY, an S&P 500 Index ETF, after the ETF closed the week at $206.44 on April 2, 2015. SPY has maintained a wide ascending trading channel for the past year with only one multi-day break beneath its trend line of higher lows.  The majority of the daily prices fall within the upper half …

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Written on Apr, 01, 2015 by in | Leave a comment

March was an up and down month for my account, but I still had less volatility than the major indexes and finished up for the month while most indexes lost ground.  I started to hedge late in the month and hope to see the benefits of the hedge later in the year.  My TLT short position lost money on the …

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Written on Mar, 27, 2015 by in , | Comments Off

I’ve been working on hedging one of my client’s accounts this week with various option combinations.  After the market closed yesterday, I realized the IWM trade I made for him could be a good trade for me too.  I finally found time this afternoon to focus on my account and made the following trades. While IWM was trading at $122.78, …

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Written on Mar, 20, 2015 by in , | 2 Comments.

I only had two options left by today’s expiration and both expired worthless.  My one MDY March $165 naked put was nearly $15 out of the money by today’s close.  Knowing that it had a very small chance of being assigned, I sold a new MDY put to replace it a couple of days ago at a strike $10 higher.  I …

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