Rookie Mistake: Sold Boeing (BA) Naked Put

I was eyeing Boeing (BA) for a naked put late this morning and just happened to hit refresh one last time before I entered my order.  BA went from $0.14 down to up by $0.85 and then came back down just as quickly.  Volume was insane compared to the rest of the morning.

I waited for another minute, raised my limit for my naked put and entered the order.  It was a rookie mistake.  While BA traded at 101.20 I sold one November 100 naked put (BAWT) and received $339.25 after commissions.  I say it was a rookie mistake because in another two minutes BA was under 100.  I checked briefing.com and found the press release below.  I think BA will be fine long term which is why I held on, but it’s obvious why it’s falling right now.  I should have checked for press releases before I entered my order and now 25 minutes later BA is down $3.00 from where it was when I sold the put.  I could’ve made another 35% on the option had I waited another 10 minutes. At least I didn’t sell the put when BA spiked. 

This is luck to be eyeing a stock when this happens and I missed out anyway.  That’s a big lessoned learned for me. 

Here’s part of the press release:

Boeing Reschedules Initial 787 Deliveries and First Flight

PR Newswire, Wednesday, October 10, 2007 at 10:33

CHICAGO, Oct 10, 2007 /PRNewswire-FirstCall via COMTEX News Network/ –

The Boeing Company (NYSE:BA) today announced a six-month delay in its planned initial deliveries of the 787 Dreamliner due to continued challenges completing assembly of the first airplanes.

Deliveries of the strong-selling Dreamliner are now slated to begin in late November or December 2008, versus an original target of May 2008. First flight is now anticipated around the end of first quarter 2008.

The company said the financial impact of the delay would not be material to earnings and that its earnings guidance for 2007 and 2008 remained unchanged.

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