Comments on: Sold NVDA June 9 Naked Puts http://mytradersjournal.com/stock-options/2009/05/18/sold-nvda-june-9-naked-puts/ Investing in Stocks Through Options Sat, 13 Mar 2010 17:39:15 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Super Saver http://mytradersjournal.com/stock-options/2009/05/18/sold-nvda-june-9-naked-puts/comment-page-1/#comment-5980 Super Saver Thu, 21 May 2009 00:11:58 +0000 http://mytradersjournal.com/stock-options/?p=2503#comment-5980 I also like the idea of selling naked puts on good stocks. However, I am waiting for the (inevitable) correction before doing so. I hate it when a stock or the stock market declines soon after I sell a naked put :-) I also like the idea of selling naked puts on good stocks. However, I am waiting for the (inevitable) correction before doing so. I hate it when a stock or the stock market declines soon after I sell a naked put :-)

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2009/05/18/sold-nvda-june-9-naked-puts/comment-page-1/#comment-5976 Alex Fotopoulos Tue, 19 May 2009 20:40:21 +0000 http://mytradersjournal.com/stock-options/?p=2503#comment-5976 What Mule65 said, plus I think the premium isn't too small, $0.50 from a $9.00 strike is more than a 5% return in a month. That's 60% annualized. That's good to me. Also, I'm not saying I'm as bullish as I am saying that I think the downside is limited and I should be able to make a profit even if it slips a little. That's the part of OTM naked puts that I like - stocks can go up or stay flat and I still profit in full. What Mule65 said, plus I think the premium isn’t too small, $0.50 from a $9.00 strike is more than a 5% return in a month. That’s 60% annualized. That’s good to me. Also, I’m not saying I’m as bullish as I am saying that I think the downside is limited and I should be able to make a profit even if it slips a little. That’s the part of OTM naked puts that I like – stocks can go up or stay flat and I still profit in full.

]]> By: mule65 http://mytradersjournal.com/stock-options/2009/05/18/sold-nvda-june-9-naked-puts/comment-page-1/#comment-5975 mule65 Tue, 19 May 2009 16:55:26 +0000 http://mytradersjournal.com/stock-options/?p=2503#comment-5975 Joe, your method requires more capital, a 6% move in the stock and is much riskier. Joe, your method requires more capital, a 6% move in the stock and is much riskier.

]]> By: Joe http://mytradersjournal.com/stock-options/2009/05/18/sold-nvda-june-9-naked-puts/comment-page-1/#comment-5972 Joe Tue, 19 May 2009 15:13:13 +0000 http://mytradersjournal.com/stock-options/?p=2503#comment-5972 I am looking at the chart for NVDA. I see your logic (retracement from recent rally?) but the premium is so small. Why do you think that this is a higher probability trade?? Why not just buy the stock with a $150 stoploss and $300 profit target?? Buy 600 shares Buy Limit $8.50, Stoploss at ~$8.25 and sell target at $9.00?? That seems doable if you are bullish on NVDA and will make you $300?? just a thought..... Obviously the NVDA numbers are higher since NVDA is going up but the concept is the same. I am looking at the chart for NVDA. I see your logic (retracement from recent rally?) but the premium is so small. Why do you think that this is a higher probability trade?? Why not just buy the stock with a $150 stoploss and $300 profit target?? Buy 600 shares Buy Limit $8.50, Stoploss at ~$8.25 and sell target at $9.00?? That seems doable if you are bullish on NVDA and will make you $300?? just a thought…..

Obviously the NVDA numbers are higher since NVDA is going up but the concept is the same.

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