ROI Spreadsheet for Naked Puts
I just added a new spreadsheet to my Excel Spreadsheets page. I use this one to help me track my ROI in two ways when writing naked puts.
The top section shows me what I have in play now. This data shows what type of return I expect to get on each individual trade and what annualized return my current holdings should return.
I review every option using the premium, strike, number of contracts and time remaining to determine what my Return on Investment (ROI) will be. When analyzing each option contract I compare which strike and premium is the best choice for me. If the underlying stock is highly volatile, I can easily see that selling puts well out of the money provides a return I can be happy with for the reduced risk. If the underlying stock is not very volatile, I can easily see that I need to skip it and move […]
Original post by Alex Fotopoulos