Wednesday, May 13, 2009
Sell to Open 1 RIMM Jun 70 Put @ 6.60
RIMM looks a little oversold to me here. It also looks like it's close to some support around the 69.50 area.
I'll put in a stop loss below 67.50ish area.
I'll put in a stop loss below 67.50ish area.
Friday, April 17, 2009
Sell to Open 1 GLD May 85 Put @ 2.40
Possible support at 85. I'll keep an eye on this though, because if the support doesn't hold, it could go all the way to 80.
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
