Getting in Deeper

Two more limit orders hit today.

While MRO was trading at 51.08, I sold two February 50 naked puts (MRONJ) to bring my average cost down on my 200 shares I currently own. I received $388.50 after commissions.

Right at today’s market open, while VIP was trading somewhere near 36, I sold three February 35 naked puts (VIQNG) and received $632.75.

I’m down on both of these already, although they are both still above their strikes. I predicted the price close to right where the orders would hit, but the stocks kept sliding. VIP broke through the trend line I had drawn that went close to the 50 day moving average. A confirmed day below those points tomorrow might be a reason to exit my position. MRO held support at 50, at my strike. MRO is close to the long trend line I’m drawing on the 5 year chart. When I get more time, maybe this weekend, I’ll catch up on all the MRO orders I’ve had and get a better feel for my actual cost on it. I should be close to even, if not just down a little.

The bad news for my day was that I lost another $3k on paper again, but at least I brought in another $1k in cash flow from the above puts I sold. NVDA inflicted the most damage again today. The Intel news did me in with it. I think they’ll rebound, but can’t even guess when. I’ve been wrong so far. My puts could easily be assigned early since they are so deep in the money now. Otherwise, I have until Feb expiry to hold on.

Read more on Marathon Oil at Wikinvest

Comments (4)

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4 Comments

Comment by Robert Kimera

It seems to me that we are in a down turn (??recession). Of course some stocks will keep on going up no matter what.

How are you adapting your strategy when most of the stocks are being pulled down by the DOW?

Robert Kimera
Comment by Alex Fotopoulos

Robert, sadly I haven’t changed my strategy much yet. I’ve wanted to sell more calls, but I’m so busy with my new job that I don’t have time to focus on it and I end up just losing more each day. I was hoping for a Fed rate cut today, but when we didn’t get it I wasn’t around to get out of any holdings. I need to either sell more calls or just close some positions. I’m close to losing as much as I made all of last year, just this month.
Comment by Teamrivers

How can I make more money….like tomorrow?
Comment by Alex Fotopoulos

Ha Ha – For those who don’t know, this guy, teamrivers, is an old friend of mine who BUYS options – the exact opposite of what I do. Sometimes we listen to each other’s advice, but mainly like to make fun of the other when we lose since we bless different strategies.
I’m hoping for a dead cat bounce tomorrow to clean up some with my Jan options expiring. Some of those are close to being assigned. Maybe you can do the reverse of what I do and make $ instead of lose this week.