Sold FWLT Naked Puts

I own Foster Wheeler (FWLT) in my IRA and charted FWLT early this afternoon to decide if I should keep it or not.  Not only did I decide to keep it and put a limit order for out of the money covered calls in my IRA, I checked the put options for my taxable account.  The premiums are relatively high due to the volatility of the stock. 

I think FWLT has more room to grow with continued infrastructure work being funded.  The way I chart it I think $19.50 could be a decent level for support.  To give myself a little extra cushion I targeted the strike below that.  While trading at $21.07 I sold four FWLT May 19 naked puts (UFBQS) at $0.75 and received $287.00 after commissions.  I decided not to hedge the puts because even if assigned I wouldn’t mind owning FWLT at a cost of ~$18.30.  If FWLT goes all of the way down to its late March intraday low just below $17.00 I’d be ready to wait it out and could sell $18.00 strike covered calls or just hold and wait for a bounce again.

My GLD trade has been doing well so far, but with three weeks to go until May options expiration I am not counting any of my chickens yet.  I’ve thought about selling a DIA put spread for a credit to give myself some more exposure to the upside, but haven’t gotten around to it yet.