Sold New FWLT and CELG Naked Puts

While CELG was at 63.58 I sold one June 60 (LQHRL) and received $274.25 after commissions.  I put the order in pre-market as I thought CELG would fall to its 20 day moving average.  It did and the premium went higher than I thought it would.  I left a little money on the table.  The bid/ask was 2.65/2.80 pre-market and I put my order in for 2.85.  I might have been able to get another $15, so it’s not major, but I like to get as much as possible.

While FWLT was at 67.37, I sold two June 60 naked puts (UFBRL) and received $488.50 after commissions.  I still like FWLT long term and the premiums are hard to resist.  It worked for me in April on three different options I sold, so I thought I should come back to the well for more.  FWLT could falter in the near term, but it will come back and with large premiums, I have a better cushion.  FWLT is not for the weak of heart, so steer clear if you can’t take a $10-15 per share swing.  I sold over $7 OTM and still got a premium that covers me in a $10 drop.  If FWLT looks like it’s going to drop more than that, I’ll sell naked calls on it early, but way out of the money since it can turn on a dime.

VIP fell below 30 today, so I’m glad I wrote the covered calls in the money on Monday.