Comments on: NDAQ Naked Puts Redux http://mytradersjournal.com/stock-options/2009/11/27/ndaq-naked-put-redux/ Investing in Stocks Through Options Thu, 18 Mar 2010 01:55:21 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: Robert http://mytradersjournal.com/stock-options/2009/11/27/ndaq-naked-put-redux/comment-page-1/#comment-6396 Robert Thu, 03 Dec 2009 05:47:04 +0000 http://mytradersjournal.com/stock-options/?p=3590#comment-6396 I usally leave them to expiration and stick with the probalities unless something has fundimentaly changed with the underlying stock. If a position does get put to me and nothing has fundimentaly changed with the underlying stock. Then I turn around and sell the next month out call at the price it was just put to me. I monitor the stocks very closely and usally any major fundimentaly change and I get out at a loss. I just checked my account on 12/2 the Maint margin requirment on my 175 AAPL put is 8,346.75 and the probality has raisen to 5% I usally leave them to expiration and stick with the probalities unless something has fundimentaly changed with the underlying stock. If a position does get put to me and nothing has fundimentaly changed with the underlying stock. Then I turn around and sell the next month out call at the price it was just put to me. I monitor the stocks very closely and usally any major fundimentaly change and I get out at a loss. I just checked my account on 12/2 the Maint margin requirment on my 175 AAPL put is 8,346.75 and the probality has raisen to 5%

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2009/11/27/ndaq-naked-put-redux/comment-page-1/#comment-6393 Alex Fotopoulos Tue, 01 Dec 2009 14:56:52 +0000 http://mytradersjournal.com/stock-options/?p=3590#comment-6393 @ Joe, you are correct that I aim for higher returns on the puts I sell. I (briefly) tried Robert's style of using the low probability approach, but got spanked a couple of times when the rare dive happened and decided the reduced risk of selling that far OTM made the reward too small for when it went against me. Robert might be a better stock picker than I was when I tried his way. @ Robert - At what point do you cut your losses if you see a position moving against you? Your picks would have to take huge dives to give you a loss, so do you leave them all until expiration and stick with the probabilities of their declines stopping before moving below your strikes? Also, thanks for posting your trades to help show others how many different approaches can work. @ Joe, you are correct that I aim for higher returns on the puts I sell. I (briefly) tried Robert’s style of using the low probability approach, but got spanked a couple of times when the rare dive happened and decided the reduced risk of selling that far OTM made the reward too small for when it went against me. Robert might be a better stock picker than I was when I tried his way.

@ Robert – At what point do you cut your losses if you see a position moving against you? Your picks would have to take huge dives to give you a loss, so do you leave them all until expiration and stick with the probabilities of their declines stopping before moving below your strikes? Also, thanks for posting your trades to help show others how many different approaches can work.

]]> By: Joe http://mytradersjournal.com/stock-options/2009/11/27/ndaq-naked-put-redux/comment-page-1/#comment-6392 Joe Tue, 01 Dec 2009 05:11:53 +0000 http://mytradersjournal.com/stock-options/?p=3590#comment-6392 @Robert: On AAPL Dec 175 puts, with 17.5k margin, you probably earned only a net of $40 max, which is 0.23%. Same holds for your other transactions here. Am I missing something? Coz that looks like an awfully small gain to be selling naked puts for! Alex on the other hand sells puts that atleast net him 2-5%(?) I guess. HUGE difference. @Robert: On AAPL Dec 175 puts, with 17.5k margin, you probably earned only a net of $40 max, which is 0.23%. Same holds for your other transactions here. Am I missing something? Coz that looks like an awfully small gain to be selling naked puts for! Alex on the other hand sells puts that atleast net him 2-5%(?) I guess. HUGE difference.

]]> By: Robert Allam http://mytradersjournal.com/stock-options/2009/11/27/ndaq-naked-put-redux/comment-page-1/#comment-6391 Robert Allam Tue, 01 Dec 2009 00:08:11 +0000 http://mytradersjournal.com/stock-options/?p=3590#comment-6391 Hello I have followed your blog for a while and I have a very simalar style. I also enjoy selling naked puts. I like uptrending stocks that I can seel with a low probability of getting put to me. This was the plays I put on today. +NEULE NEU Dec 110 Call Covered call +SIDXF SID Dec 30 Put 11% pro of getting put to me +QHBXR FSLR Dec 90 Put 2% pro of getting put to me +NEUXR NEU Dec 90 Put 7% pro of getting put to me +APVXO AAPL Dec 175 Put 3% pro of getting put to me Hello I have followed your blog for a while and I have a very simalar style. I also enjoy selling naked puts. I like uptrending stocks that I can seel with a low probability of getting put to me. This was the plays I put on today.
+NEULE NEU Dec 110 Call Covered call
+SIDXF SID Dec 30 Put 11% pro of getting put to me
+QHBXR FSLR Dec 90 Put 2% pro of getting put to me
+NEUXR NEU Dec 90 Put 7% pro of getting put to me
+APVXO AAPL Dec 175 Put 3% pro of getting put to me

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