Sunday, January 04, 2009
Happy New Year!
Happy New Year folks! I hope this year is better for the stock market than the previous year.
I apologize for not blogging recently. It was partly due to a few changes in my personal life, and partly due to the fact that I didn't trade options a whole lot due to the extreme volatility. I'm hoping for things to settle down a little bit in 2009.
I was thinking about a few New Year's resolutions I made last year, especially the one in which I would like to try out a few other options strategies. Well I did try out a few Call/Put spread trades and a few Naked Put trades and they did work out well for me. I would like to thank "Options for Rookies" for this. Selling options will generally get you more winning trades although the returns might not be as much as when you buy options.
I currently have 2 option trades open.
I Sold to Open 1 RIMM Jan 40 Put (Naked Put) @ 2.83
- I opened this position when RIMM announced their results a few days ago, I opened it when it went a little above 41. It has lost a decent percentage based on time alone.
I Sold to Open 1 USO Jan 30 Put (Naked Put) @ 2.70
- Oil looked very oversold to me. I sold this put when USO was around 30.
The market looks very overbought at these levels. Most of the stocks and indexes look like they're near resistance levels. I'll look to close these positions if the rally looks like it is stalling.
All the best to all!
I apologize for not blogging recently. It was partly due to a few changes in my personal life, and partly due to the fact that I didn't trade options a whole lot due to the extreme volatility. I'm hoping for things to settle down a little bit in 2009.
I was thinking about a few New Year's resolutions I made last year, especially the one in which I would like to try out a few other options strategies. Well I did try out a few Call/Put spread trades and a few Naked Put trades and they did work out well for me. I would like to thank "Options for Rookies" for this. Selling options will generally get you more winning trades although the returns might not be as much as when you buy options.
I currently have 2 option trades open.
I Sold to Open 1 RIMM Jan 40 Put (Naked Put) @ 2.83
- I opened this position when RIMM announced their results a few days ago, I opened it when it went a little above 41. It has lost a decent percentage based on time alone.
I Sold to Open 1 USO Jan 30 Put (Naked Put) @ 2.70
- Oil looked very oversold to me. I sold this put when USO was around 30.
The market looks very overbought at these levels. Most of the stocks and indexes look like they're near resistance levels. I'll look to close these positions if the rally looks like it is stalling.
All the best to all!
