DIS and MDY Naked Puts

Coming into this coming Friday’s option expiration, I have two MDY June $290 naked puts left to expire. Being more than $9 out of the money, I opted to leave them in place and let them expire worthless. While I’m still nervous about what’s to come for the markets, I opted to sell one at the money put to replace the expiring two out of the money puts. While MDY was trading at $320.26, I sold one MDY September $320 naked put for $8.50 and received 849.74 after paying $0.26 in commission. I’ll sell another MDY put later probably or might choose another stock or ETF.

I traded on DIS for a while, but after my last shares were called away at $110 in February, I kept my distance until today. Actually, I placed the order a day or two ago and it just hit today. While DIS was trading at $106.21, I sold one DIS August $106 naked put for $2.60 and received $259.32 after paying $0.68 in commission. If this put is assigned, I’ll have a cost of $102.41 after exiting four month ago with a sale price of $112.44 including the covered call premium. I’ll be happy to get back in $10 cheaper.

You can find my video summary of the trade here on YouTube:

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