I’ve only made one trade for August options expiration and that was a covered call. I just can’t find the stocks I want to sell naked puts on. I have one limit order in to sell naked puts on NVDA again. It’s been more than 30 days since I took my losses on it and now that the wash rule doesn’t affect me, I’m thinking about getting back in. I sold at 20 and 22.50 and it’s trading close to 20 right now. I made the right move by letting my shares get called away so I could take the losses for tax purposes and now am eyeing the August 17.50 naked puts.
I read an interesting article on MarketWatch today that painted a gloomy picture of where the markets are heading based on the charts. I think he’s on to something which explains my lack of trading. I’d rather miss a short rally than get spanked too bad on a hard pull back or longer bear market with too much invested and not enough cash ready to put into play at cheaper prices. If I miss an upward swing, so be it.
I added another $15,000 to my money market (NPLXX) instead of letting it sit in pure cash. This brings my total money market to $90,000. I’m only long VIP, so I needed the cash to be working for me in the money market, even if only at 2.05%. Maybe we’ll get a rate increase from the Fed and I’ll earn more on this cash.
Hi Alex,
I feel much as you do. Since Jun expiration I sold a number of covered calls, mostly for July expiration, but I just don’t feel very good about selling new puts right now. However, I am looking at maybe selling JOYG Jul08 or Aug08 70 Puts. I sold 2 JOYG Jun08 80 Puts after your post about JOYG earlier in the month. That was a good trade for me. Thanks.
Bill
Cool, glad you made some money with me. The 70 strike puts might work, especially since JOYG found some footing on Friday.
-AF (6/28/08)