Closed IWM September Naked Put

The order I placed last week to close my IWM September naked put hit this morning. I placed the order to eke out a few dollars profit, but ended up doing better as IWM gapped higher at the open. While IWM was trading at $140.39, I bought to close one IWM September $142 naked put for $1.90 and paid $191.09 including $1.09 in commission. My limit order was to buy it back for $2.35, but I pulled in an extra $45 to give me a realized gain of $50.23. I left $0.29 in time value in the contract and could’ve done better if I waited, but am happy to be out of it with a profit.

Since I sold a replacement for this put last week, I opted not to add more exposure yet. I have three other September puts that need to expire before I add much more risk. My XLF puts are safe, but ADI can reverse in the blink of an eye and my MDY naked put is still in the money, albeit with a paper profit. I’m waiting for the November contracts to become available for ADI and MDY before I re-write these contracts. XLF has November contracts already, but I’m not certain I want to get back in or if I should try something new.

You can see my YouTube trade video here:



« « Sold IWM October Naked Put - | -


* 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)