Comments on: Sold FWLT November 32 Naked Puts http://mytradersjournal.com/stock-options/2009/10/19/sold-fwlt-november-32-naked-puts/ Investing in Stocks Through Options Fri, 27 Jan 2012 21:33:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2009/10/19/sold-fwlt-november-32-naked-puts/#comment-6309 Alex Fotopoulos Thu, 22 Oct 2009 20:19:37 +0000 http://mytradersjournal.com/stock-options/?p=3383#comment-6309 Leo, I don't worry about earnings as much as I used to. I think it's partly my mindset change to believing that options are likely fairly priced to account for the expected move in either direction. A lot of the time (at least lately) stocks haven't been moving as big as expected after earnings are announced. If you sell the options, you get a quick benefit from the volatility dropping fast after earnings. You could always hedge with an option farther out of the money if you want to remove some of the risk. Leo, I don’t worry about earnings as much as I used to. I think it’s partly my mindset change to believing that options are likely fairly priced to account for the expected move in either direction. A lot of the time (at least lately) stocks haven’t been moving as big as expected after earnings are announced. If you sell the options, you get a quick benefit from the volatility dropping fast after earnings. You could always hedge with an option farther out of the money if you want to remove some of the risk.

]]> By: Leo http://mytradersjournal.com/stock-options/2009/10/19/sold-fwlt-november-32-naked-puts/#comment-6308 Leo Thu, 22 Oct 2009 14:25:11 +0000 http://mytradersjournal.com/stock-options/?p=3383#comment-6308 Are you concerned about establishing a position prior to earnings? I always struggle with this conflict of emotions (miss out on a move up or avoiding a big drop). Right now I want to write a put on APA, but have not yet made a decision. Are you concerned about establishing a position prior to earnings? I always struggle with this conflict of emotions (miss out on a move up or avoiding a big drop).

Right now I want to write a put on APA, but have not yet made a decision.

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