Sold CMI September Naked Calls

As I mentioned in my previous post I had an order on CMI.  While CMI was trading at $55.50, I sold two CMI September Naked Calls (CDMIL) for $0.55 each and received $98.50 after commissions.  CMI closed the day at $57.36, so clearly I didn’t sell my new options at the high of the day.  If the powers-that-be favor me this week, CMI will close very close to $60 and I’ll profit on both these calls and the naked puts I sold earlier.

I ended up taking in nearly $500 in premiums today from my three trades and have three days to wait to see if those were foolish moves in an effort to save some losses.  I finished the day up $267.50 for the day, up about $4500 from my intraday low.