Foster Wheeler (FWLT) Naked Puts
FWLT is one of those stocks I like to keep coming back to. It’s volatile enough to give good premiums and profitable enough that I don’t see a complete wipeout in their future. They missed earnings today which made the stock drop more than 10% at open. I saw the headline and was happy I hadn’t gotten in yet back when first reconsidered it. I forgot that I had a limit left in play for the April 65 strike (UFBPM), the low range of the current long term trend.
With volatility spiking on it this morning, my order hit while FWLT was trading around 70 and I received $309.25 after commissions. My limit was for $3.00, but TD Ameritrade helped me out this time and I got $3.20. It traded as high as $3.40 before FWLT came off its lows and I moved to a paper profit.
Original post by Alex Fotopoulos