selling naked puts and writing covered calls stock options blog
Written on May, 08, 2015 by in , | Leave a comment

When TLT started its steep decline last week I started to get comfortable with the idea that my short position would finally be closed at next week’s May option expiration.  I’m short 700 shares of TLT and have covered puts at the May $128 strike and naked puts at the May $134 strike.  While it’s possible for TLT to rally $1 a …

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

April was a good month for me.  I came out much better than the broad indexes and owe most of that to TLT moving in my favor finally and a small amount to my couple of hedges that moved to a profit.  I only have three option positions set to expire in May.  Two of them are on TLT and …

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Written on Apr, 23, 2015 by in , | Comments Off on SPY Option Combination

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 , | Comments Off on Options Expiration – April 2015

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 , | Comments Off on Roll TLT Covered Puts to May

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 , | Comments Off on Closed XOM and SSO Puts

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 , | Comments Off on Rolled DIS and IWM Naked Puts

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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