Tuesday, January 20, 2009
Buy to Close - 1 Feb 30 Put @ 2.95 (Sold @ 4.10)
Profit +$115
I decided to take profits on this one. I'm not sure which way the market is headed.
I decided to take profits on this one. I'm not sure which way the market is headed.
Saturday, January 17, 2009
Sell to Open - 1 Feb 30 Put @ 4.10
I sold a put on X when it broke below $30. X as well as the market in general was oversold and was due for a bounce.
Labels: X
Assigned 100 DIG @ 29
Paper Loss of around -$50 ($29 strike - $1.30 premium = $27.70 cost basis)
DIG closed below my strike of $29. I let it get assigned, as I feel it has a chance of testing $30 again.
DIG closed below my strike of $29. I let it get assigned, as I feel it has a chance of testing $30 again.
Labels: DIG
Tuesday, January 13, 2009
Before the Open
I found a pretty good site that gives useful information before the market opens. Here's the link. It could give you an idea of which stocks to concentrate on.
Labels: Before Open, premarket
Friday, January 09, 2009
Sell to Open - 1 DIG 29 Put @ 1.30
Wednesday, January 07, 2009
Buy to Close - 1 DUG Jan 22 Put @ 0.90 (Sold @ 1.80)
Profit + $90
The Market's getting tricky again, although it's overbought, it's somehow hanging in there. I decided to take profits on this.
The Market's getting tricky again, although it's overbought, it's somehow hanging in there. I decided to take profits on this.
Labels: DUG
Tuesday, January 06, 2009
Sell to Open - 1 DUG Jan 22 Put @ 1.80
Sold a put on DUG. Energy stocks look a little overbought to me here. I'll look to cover if DUG breaks below 20.
Labels: DUG
Monday, January 05, 2009
Buy to Close - 1 USO 30 Jan Put @ 0.45 (Sold @ 2.70)
Profit + $225
Oil has had a good run the past few weeks. Locked in my profits on this one.
One thing I've realized selling naked puts is to take profits when you've already made 75-80% on the trade. If you try to squeeze out the extra bit of profits in this kind of a trade, it could backfire in your face. It doesn't take much time for options these days to go right back in the money.
Oil has had a good run the past few weeks. Locked in my profits on this one.
One thing I've realized selling naked puts is to take profits when you've already made 75-80% on the trade. If you try to squeeze out the extra bit of profits in this kind of a trade, it could backfire in your face. It doesn't take much time for options these days to go right back in the money.
Buy to Close - 1 RIMM 40 Jan Put @ 0.72 (Sold @ 2.83)
Profit + $211
I decided to take profits on this one. I put in a tight stop intra-day and it got hit. Everything just looks so overbought, and I wanted to protect my profits on this one.
I decided to take profits on this one. I put in a tight stop intra-day and it got hit. Everything just looks so overbought, and I wanted to protect my profits on this one.
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!
