Sold DOX Naked Puts

I certainly didn’t mean to make five trades today, but that’s how it worked out.  The first three were planned as I originally wrote, BNI was supposed to hit in a few days and the fifth, AMDOCS (DOX) was just a big surprise.  Not a total surprise since I knowingly entered the order, but my limit was way above the then current bid/ask.  (gotta love limit orders…) 

I just got finished closing out my September options for a profit as DOX finished above my strike, but decided to revisit it since 34 seemed like a good support level.  I put a limit order in and six hours later my order hit.  While DOX was trading at 34.65 in part of a sharp decline in the final hour of trading, I sold two November naked puts (DOXWG) and received $308.50 after commissions.  I haven’t seen any news yet on what caused the fall, so I’m hoping it was just a lucky dip for me and I’ll be riding high on the good premium I got for it.  Maybe a lucky side to it, I meant to enter my trade for three contracts, but for some reason hit two.  If it tanks I’ll be happy to have made the mistake.  I’m trying to make the underlying value closer, if not greater than, $10,000 for each option so I can be a little more focused on my trades and not have to have so many different positions open.  It also will have the small added benefit of cutting back on commission costs if I only make 10 trades instead of 15 for example.  Obvious, but worth mentioning since commissions can take a sizable chunk out of a plan if not monitored.

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