Sentences with phrase «naked puts»

"Naked puts" is a financial term used to describe a trading strategy where an investor sells a put option without holding the underlying asset. It is considered "naked" because the investor doesn't have any protection or collateral in case the option is exercised. This strategy carries higher risk compared to covered puts, which involve owning the underlying asset. Full definition
Level 4 is the most difficult to get approved for because it involves risky strategies such as selling naked put options.
If it drops much more I'll have to consider adding a new naked put, maybe at the $ 55 strike.
You think it will stay flat or go up so you sell (short) 1 naked put option with a strike of $ 30.
Maybe a FB naked put 6 - 10 % out of the money.
If you sell a cash - secured naked put, though, you protect yourself.
I also like the idea of selling naked puts on good stocks.
While DVY was trading at $ 87.33, I sold one DVY January $ 87 naked put for $ 1.65 and received $ 164.75 after paying $ 0.25 in commission.
If anything, I'm more interested in selling naked puts in order pickup shares in the future at a price I've already locked in while earning a premium.
I've sold two sets of naked puts since then and have profited nicely on both, but could've done better by buying calls or even buying the...
My strategy is to write naked puts on stocks that I wish to own at the price I want to own them at.
I'm down over $ 1,400 on my GS naked put too, but GS has recovered substantially (up $ 15 from its intraday low last week), and I think I'll be able to work my way out of it with a profit with the help of some covered calls through the summer.
While the biggest part of the post-election rally might be in the books, I think I could do well by selling some out of the money naked puts for January and February.
I feel better about my IWM naked put trade from yesterday.
I've been watching Materials Select Sector SPDR Fund (NYSE Arca: XLB) for a while — ever since my last naked puts finished out - of - the - money.
The realized gain on my IWM May naked put will be $ 434.37, the full amount received on March 16.
I took an early assignment on my WMT naked put as I wrote about yesterday.
I don't think I'd risk selling any new naked puts with 200 shares in hand, but might if I see some fundamental and / or chart changes that warranted the extra risk.
However, there are a few differences that may make naked puts more or less attractive than covered calls depending on your circumstances.
I had a loss of $ 827.39 (~ 0.82 %) on paper for March (compared to the Dow's 3.47 % decline and the S&P 500's 2.64 % decline) and had $ 1,214.09 in realized gains from my seven closing trades on my ADI, GS, IWM, WMT, and XLB naked puts in addition to my short TLT call spread.
Yet most brokers allow traders to sell covered calls in their IRA accounts, but not naked puts?
On an average, $ 5,000 is the average to open a option trading account, but the broker will probably limit your account to basic option trades rather than the more advanced strategies like naked put selling, which carry more risk.
It looked like small - cap stocks were turning around and I figured I should wait before exiting my four naked puts since I had so much time value left to erode...
When I wrote about selling my first VNQ naked put last week I said I originally planned to sell two contracts, but then decided to wait for another opportunity to get in on the second contract if...
I only have two positions scheduled to expire in July (IWM and ADI naked puts) and might end up with a loss I carry over into August on one or even both of them.
I started the change with MDY since my December MDY naked puts expired on Friday and I needed to add some more mid-cap exposure back into my account anyway.
My one IWM May $ 159 naked put expired worthless and since it wasn't close to being assigned, I left it to devalue without closing it.
My in the money MDY, MVV and UWM naked puts have been huge for me today with their underlying share prices rising and volatility dropping.
The best move I could've made would've been to buy my WMT naked put before it expired and since I didn't, I had to decide if I should dump the shares or sell a covered call.
If the $ 1.35 limit order doesn't hit, that'll mean that DIS has regained its footing and my single naked put should finish out - of - the - money.
I'll have a realized gain of $ 201.20 from the first naked put assignment and this covered call assignment even though I'm selling the shares for $ 5 less than I paid.
Just after 3:00 pm yesterday my order to sell VIP naked puts hit.
In March 2012, I sold a single QCOM naked put at the $ 67.50 strike while QCOM was trading at $ 66.25.
I typically use the «option requirement» value for naked puts calculated by my broker.
Using naked puts and then switching to covered calls can be confusing if you manage many different positions.
Some investors have a hybrid strategy of selling naked puts until they are assigned (so now they own the stock) and then turn around and sell a covered call at the same strike.
An alarming number of financial professionals, including stockbrokers, financial planners and journalists are in position to educate the public about the many advantages to be gained from adopting naked put writing (and other option strategies), but fail to do so.
I might simply go back to another IWM naked put farther out of the money than I usually would.
I'm long term bullish on oil, so I can handle naked put option assignments on USO and don't usually hedge because of that.
AFL rebounded very soon after my trade, so I added $ 36 strike naked puts to create an option straddle to go with my long / covered call position.
I'm short an October naked put on TWM (double ultra short Russell 2000 ETF) and might close it as soon as tomorrow.
I'm reminded again why I prefer naked puts over covered calls.
If all of my July naked puts are assigned I'd...
While VIP was trading at $ 29.32 I sold two VIP August naked puts (VIQTF) and received $ 438.50 after commissions.
I bought back the CELG naked put I had for last week's June option expiration.
My NFLX naked put was still more than $ 60 out of the money at the end of March.
My AAPL naked put was only $ 3 out of the money.
I was able to bring in $ 2,069.17 in premiums today by selling calls on TLT, DIS and IWM and rolling my DIS naked put higher.
Selling naked puts just gets me in cheaper.
Coming into this coming Friday's option expiration, I have two MDY June $ 290 naked puts left to expire.
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