Sold March IWM Naked Put

As I mentioned yesterday in my post, I planned to sell an IWM naked put if the priced dropped a little today. The price didn’t drop and I wrote the put anyway. I decided the employment data and the bullish crossover of the 10-day moving average over the 20-day moving average was enough of a reason to make the trade, especially since I’m still under 50% invested, even after this trade.

While IWM was trading at $136.60, I sold one IWM March $135 naked put for $2.31 and received $229.90 after paying $1.10 in commission. I opted to sell the March put versus the April put for a better annualized gain and because I figured I should sell the closer expiration first and spread out some of my next trades farther out on the calendar. By mid to late next week, when I expect to get around to another trade, the March puts will only be about five or five and a half weeks out and won’t bring in the premiums I’d like for the risk.

You can see me walk through the trade inĀ this video.



« « Sold MDY Put Option Combination - | -


* If you like this post, then consider subscribing to the Full RSS feed or email updates.

DISCLAIMER: While I am a Registered Investment Advisor Representative, the information contained within this site does not constitue personalized investment advice. This material is meant as entertainment and is only a view into how I invest my own account, but not necessarily how you should invest your own funds. Trade using your own research at your own risk. This is impersonal investment advice which means the material written here, in email exchanges, on Twitter and/or other social networking sites do not purport to meet the objectives or needs of specific individuals or accounts.





Other Popular Articles:

- How to Read an Options Table

- Determining an Exit Price for a Stock

- Understanding Downside Risks in Investing

- How Naked Put Selling Works

- 10 Tips for Keeping Emotions out of Investing



No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Have some thoughts about this post? Leave a comment to voice your opinion. If your comment is nondescript, I might think it's spam and delete it. While I appreciate all comments, I hate spam.

(required)

(required)