This is the first part in a series of posts discussing how I manage a put option. Today’s post discusses what a put option is and several of the factors that work into determining how the premium is determined. When you sell a put option there’s only three things that...
At the start of the month I made some option trades that I wanted to let you guys know about. Each of these trades had been updated as soon as they happen on the Puts/Calls section of my Portfolio BA Put Option Details Contract length (remaining): 29 Days Number of...
While I only have three stocks that pay their dividends in August, all three pay well and make up a large portion of my portfolio. Last August I made $117.04. This August I received a total of $233.74, a increase of 99%. This amount brings the year total up to...
ANF Type: naked short put Margin requirement: ~$450 (While this is technically a naked trade, I have the available funds if I were to be assigned.) 08/15/14 STO 1 ANF Sep26 2014 35 Put @ 0.67 Comm = 1.54 Credit: $0.67 Earnings for this stock is before market open on...
UAL Type: naked short put Margin requirement (as of 8/12/2014): $456.50 (While this is technically a naked trade, I have the available funds if I were to be assigned.) 08/12/14 STO 1 UAL Sep26 2014 37.5 Put @ 0.74 Comm = 1.54 Credit: $0.74 This trade could turn out a...
CREE Type: naked short put Margin requirement (as of 8/4/2014): $457.50 (While this is technically a naked trade, I have the available funds if I were to be assigned. CREE is a growth stock that I wouldn’t mind owning.) 08/04/14 STO 1 CREE Sep20 2014 40.0 Put @ 0.52 Comm...
In early July I closed my LULU option for a nice profit. Rather than let the money sit idle, I decided to open some more put trades to generate income. I chose two stocks with a high implied volatility (IV) to obtain higher premiums. Both stocks tend to have relatively...
Unlike LULU’s pants, apparently their earnings are harder to see through. On 6/11/2014 I opened a trade on LULU. LULU was set to announce earnings after the close of the market on the 12th. At the time, LULU was trading around 44.30 and had a high implied volatility leading up...
