Yesterday is Gone, Is NYX & DWA Too?

During all of the flurry of activity yesterday the limit order I placed on NYX naked puts from a few days ago triggered.  As the volatility jumped and NYX declined I quickly realized the order I had not too far above the then current bid/ask was way under priced.  I should have considered removing all of my limits after the Fed disappointed the masses, but I didn’t and now I’m short one more naked put.  That’s not necessarily a bad thing though.

While NYX was trading at 89.29 (and falling) my limit order hit and I sold one January 85 NYX naked put (NYXMQ) and received $219.25.  NYX closed at 87.66 yesterday.  It was one of days where I was way off from my expected target, but still think I’ll pull out a profit on it.  Luckily I didn’t get cocky and kept my strike well out of the money.  NYX is up in pre-market and I still have a good cushion anyway, so I’m riding it out still.  The chart is still in the range I planned, but I just didn’t plan for the volatility spike like I should have.

The first email I saw this morning was one from TD Ameritrade stating my DWA naked puts were assigned.  I’m on an early option assignment role lately.  That’s not a good thing always, but I already sold calls on it last week knowing it was coming eventually and will continue to ride this one out.  I’m sitting on a paper loss right now.  Maybe I’ll sell before the end of this month to get the tax write off, but that’s a couple of weeks away.

On a positive note, I received another dividend on my 200 MRO shares I’m long. $48 this time.  That flows into some of the good that happened yesterday.  Out of the stocks that I own that got hit hardest yesterday, the ones I have covered calls in-the-money fell the most which means $0 change for me in the end. 

On the advertising side of my blog, I closed an agreement with someone who bought three text links at the top of each post for the next 12 months.  Those links replace the Google Adsense ads I had up there and will stay in place for a full year.  I plan to raise advertising rates in 2008, so if you are in need of getting a tax write-off in 2007, please check my advertising page and let me know if you would like to secure an ad somewhere on my blog.  Extended contracts and multiple ads get discounts off the prices posted.