Put options on ProShares Ultra Russell 2000 (UWM) have become hard to resist for me lately. I understand after such a big run up the risks are higher of a bigger correction, but the January 2012 options have extreme pessimism built into them. Before today I was already short one contract at the January 2012…
Tag: UWM
Sold More UWM LEAPS
After posting the Russell 2000 chart this past weekend I thought this week would start off with more of a decline, but so far the 50 day moving average hasn’t even been touched yet and small caps have moved higher again, albeit not to last week’s highs so far. Sticking with my theme of not wanting to…
Bought More BND & Sold OTM UWM Puts
As I mentioned in my end of the year wrap up a couple of days ago I decided to increase the bond allocation in my accounts. I debated if I should do this now or wait longer and see if yield rise some more (meaning the prices of bonds drop more). I also thought about buying JNK which is…
Sold Another UWM Naked Put
Keeping with my plan to load up the majority of my account with LEAPS (or at least longer dated options) I was half playing around with UWM puts well out of the money. I still have my wife’s IRA with TD Ameritrade and they don’t charge for changing limit orders like Interactive Brokers does, so…
Sold UWM LEAPS
Although I already have some small cap exposure through IWM naked puts I decided not to wait any longer before selling my first LEAPS on ProShares Ultra Russell2000 (UWM). The “Ultra” part of the name signifies that ProShares tries to seek results that equal twice the daily performance of the Russell 2000 index. Since I’m still…
Options Expiration – November 2009
One of the biggest decisions to make when selling options is picking the right strike price. What’s considered the right strike price isn’t a one size fits all. Some investors (I’m saying “investors”, not “traders” because I don’t look at my approach as short-term enough to actually be called trading) might want the maximum premium intake possible while…
Sold November UWM Naked Puts
For the past few months I’ve written about my lack of buyer’s remorse, not because I wasn’t remorseful of what I bought, but because I was remorseful of what I didn’t buy. (Still with me?) For months I’ve stayed underinvested, waiting on a pull back that hasn’t come. Although I still expect it to come…