Sold DuPont (DD) Naked Puts
Possibly just out of boredom, I pulled the trigger too early on DuPont this morning. The chart said it could fall to 48 and maybe even as low as 46 before regaining support, but I admittedly got anxious and put my limit in too low, in between the bid/ask.
While DD was trading at 49.64, I sold two May 47.50 (DDQW) naked puts and received $228.50 after commissions. I still have a good cushion to make it work, but without being bullish on the market right now, I should’ve priced my order for a dip.
I have only three options set to expire in May so far (including this one). So I know that played a factor in my mind, but I really should know better than that. I’d have been wiser to place a higher limit and save my cash reserves for other positions that will become more attractive as we drift […]
Original post by Alex Fotopoulos