Sold Alcoa (AA) Naked Puts, Again

In my hunt for stocks to sell options on, I started treking back through previous trades I’ve made and came upon AA Tuesday morning.  I think AA won’t fall much, if at all and put a limit in to sell naked puts a few dollars out of the money.  AA dropped some today and while at 37.52, I sold three AA June 35 naked puts (AARG) and received $377.75 after commissions.

AA ended the day up a few cents to 38.09 on an overall down day for the market. ~35 has offered good support for the past two months, so I’m banking on it working for me again.  I might have gotten back in too soon since AA is still in its trading channel and could come back to the 35 range before perking up again.  Then again, with it up on an overall down day I might have timed the dip exactly right.

In my rarely discussed IRA, I sold in the money covered calls on PAYX for a June 35 strike.  I’m nearly fully invested in both my wife’s and my IRAs now and can return full attention back to my taxable account.