Monday, February 16, 2009

Trade Management Techniques

In today's video, I review 4 different techniques for managing naked puts that run amiss.

video

Tyler-

4 comments:

Option Seller said...

I too trade the USO from time to time, selling far otm naked puts. I am short a few 21 strike for Feb that should stay otm. I feel that oil is flat lining here, so maybe it has a few bucks to the downside, and of course the upside could be frighteningly high, especially in this economic environment.....

Tyler said...

Thanks for the comments. It does look as if you may be far enough OTM on those 21 strikes. Even with today's down move, we're getting a bit oversold, so wouldn't surprise me to get some sort of bounce this week in USO. Just curious, how much premium did you bring in on the 21 puts at trade inception and when did you sell them?

Option Seller said...

What a change a couple of days makes....barring any type of disruption to the oil market (also no oil reports coming out the rest of the week, besides jobless claims which may confirm a deepening slowdown), I still feel safe with my short 21 strike, but if needed I can roll them down and out. Sold 10 contracts 1-21 and 1-14 for .20 each (uso was about 10 bucks higher then).....

QUALITY STOCKS UNDER 5 DOLLARS said...

One really good well put together post.