Aug 31 2009
Sold Naked Puts on DSX & UCO
I entered a few orders over the weekend with the idea that they might trickle in during the week while I stay focused on my new job. Instead, two of them hit in the first half hour of the trading day which caused me to get email alerts to my phone. That meant I “had to” go and check on what I sold and where the underlying stocks were trading so early to have my limit orders hit. After all, I thought I had placed the orders fairly far off the current trading prices.
The first trade came when UCO (ProShares Ultra DJ-UBS Crude Oil) was trading at $11.75 right at the open. I sold to open two UCO September 12 naked puts (UCOUE) at $0.90 each and I received $168.50 after commissions. My limit order was set to sell at $0.80, so at least I got in better than I was trying for even [...]
Original post by Alex Fotopoulos