Sold Western Digital (WDC) Naked Puts

I wrote about Western Digital a few days ago and my order hit today while WDC was trading at 17.83.  Two days after I wrote my first WDC post it fell below its 10 day moving average.  Today its below its 20 day moving average while I write this.  The 20 day was acting as good support for a while, so this is going to be interesting.  The 50 day is still above my strike and I have two months to go, so I still feel good about the trade.  For now, WDC sits almost right on its short term trend line that I’m hoping will hold.  I received $336.25 after commissions from selling five July 17.50 puts (WDCSW).

This, like my TV trade yesterday, illustrates the importance of selling puts through limit orders, especially when the chart offers a little room to ”give”.  With this order I am very close to being 200% invested, but in another day and half two of my options will expire worthless – SLB and MA are both well OTM.

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