NYX – A Lesson in the Benefits of Selling Options

I’ll be selling my NYX shares with options expiration upon us this weekend.  I am exiting the position with a profit as I planned when I wrote my most recent covered calls on NYX, although the stock itself is down from when I first started trading on NYX with a naked put last December, over 10 months ago.  NYX has fallen from 100.10 when I first sold a naked put to below 85 while I write this at 45 minutes before market close on the last day of trading before expiration. These are the trades I made to get me to a profit:

12/5/06 – Sold 1 January 90 naked put, NYXMR, and received $419.24.

1/9/07- Sold 1 February 100 naked put, NYXNT, and received $499.24.

2/20/07 – Bought 100 shares of NYX when NYXNT was assigned (put to me) and paid -$10,029.99.

2/20/07 – Sold 1 April 95 covered call, NYXDS, and received $399.24.

4/23/07 – Sold 1 July 90 covered call, NYXFR, and received $499.25.

6/18/07 – Sold 1 August 80 covered call, NYXHP, and received $399.25.

8/20/07 – Sold 1 October 75 covered call, NYXJN, and received $649.24.

10/20/07 – Will sell 100 shares of NYX when NYXJN is assigned (called away from me) and will receive $7480.00.  If you are not reading this post on www.mytradersjournal.com you are reading it from a site that has plagiarized it.  Please visit my site for original content and stop visiting this thief’s site.

I finish the entire series of trades with a profit of around $315.  If I had not been writing options at each opportunity I would have been sitting on a $1,500 loss.  I’d have more profit if I had not misjudged the movement NYX was going to have these last few weeks.  I have to admit that I grew tired of the seemingly never ending fall of NYX and let emotions get the best of me a little as I could have sold farther out of the money and received a decent premium and another $500 in growth from the underlying stock.

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