Tuesday, September 23, 2008
Buy to Open - 2 DIA Sept 115 Calls @ 0.51 each
This is a very very very speculative play. I'm just thinking that if the bailout plan is well received, the market will rally hard. I'm prepared to lose this entire premium if it doesn't pan out.
Labels: DIA
Sunday, September 21, 2008
A few points on Selling Naked Puts
Here are a few things I realized selling Naked Puts...
1. Try to cover the position when your profits reach a certain point. There were multiple times when I could have closed these positions a long time before the expiration for a 50-90% gain, but I wanted to collect the entire premium. Holding a put on SKF during one of the most volatile week for financials on Wall Street was nerve-wracking.
2. Selling way out of money options don't lose value that quickly (at least when the stocks are volatile). So I'll need to sell something closer to the money.
1. Try to cover the position when your profits reach a certain point. There were multiple times when I could have closed these positions a long time before the expiration for a 50-90% gain, but I wanted to collect the entire premium. Holding a put on SKF during one of the most volatile week for financials on Wall Street was nerve-wracking.
2. Selling way out of money options don't lose value that quickly (at least when the stocks are volatile). So I'll need to sell something closer to the money.
Labels: Nake Puts
Friday, September 19, 2008
Buy to Close - 1 LVS 35 Sep Put @ 0.05 (Sold @ 1.00)
Bought this one back for 5 cents. Although it expired worthless towards the end of the day, I decided to cover it in the middle of the day due to the high volatility in the markets.
Thursday, September 18, 2008
Buy to Close - 1 SKF 105 Sep Put @ 0.25 (Sold @ 3.10)
Damn this one was a tough one to hold. Decided to close it a little early, as it can move 20-30 dollars in a heartbeat. Might talk more about this over the weekend.
Still holding onto the LVS naked put. Not sure what I'll be doing with it though.
Still holding onto the LVS naked put. Not sure what I'll be doing with it though.
