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I sold MAY 17 puts for .45 the day after earnings. I considered the same put spread you did before earnings but was just kind of preoccupied with bond futures and didn't set aside time to do anything here. I got far less than I could have received before earnings, I think you got double what I did; but I feel more comfortable taking less after seeing the stock reaction after earnings, or I should say the non-reaction. I thought the IV left standing after earnings was a sell.
I agree. Going forward I am not too concerned about 17 and I will buy shares at 17- but I would be wary about selling naked calls (not something I will do in this company but I know you have done so successfully in the past). All it takes is one court decision in their favor and the stock could pop $5-10 in a flash.
I like the naked 17 puts, and for June the price is getting attractive. Only problem is I already have that position for May, so reluctant to add more naked till May expires (hopefully).
I'm naked puts for May so that's why I'm interested in a put spread for June. I wasn't filled yesterday at .32 for the 17/16 put spread even though that was the midpoint many times in the day. That stock has thinly traded options so market makers don't usually take you out at the mid point. I'll be patient.
Well, with today's downturn I couldn't resist. Sold the June 17 puts naked again for $0.93. This has worked well for me so far in May, so I'm giving it another go even though May is not over for me yet. Tried to get 32 cents for the spread in an account I am managing for someone, order never filled all day.
I did something similar, sold the JUN 15 puts for .39. I also got frustrated with my put spread not getting filled. IV is attractive again and other than a general market sharp sell off I like this trade, but since I'm still naked 18 strike puts for May I had to go further down the ladder to justify the additional risk. My rationalization was that the .39 I got for the 15's is more than the 17/16 spread I was trying to sell. A break even of $14.61 looks good on the chart considering earnings isn't until after JUN options expire, even if there is a good size market sell off. Last time we were sub $15 was JUL 09 and there looks to be more support points between 15.50/16.50. I only did 10 contracts so it's really not a large risk. If the MAY 18's expire worthless than I might try another spread for JUN.
I sold MAY 17 puts for .45 the day after earnings. I considered the same put spread you did before earnings but was just kind of preoccupied with bond futures and didn't set aside time to do anything here. I got far less than I could have received before earnings, I think you got double what I did; but I feel more comfortable taking less after seeing the stock reaction after earnings, or I should say the non-reaction. I thought the IV left standing after earnings was a sell.
ReplyDeleteI agree. Going forward I am not too concerned about 17 and I will buy shares at 17- but I would be wary about selling naked calls (not something I will do in this company but I know you have done so successfully in the past). All it takes is one court decision in their favor and the stock could pop $5-10 in a flash.
ReplyDeleteNew position : Sold the June 17/16 Put vertical for 30 cents today. Still holding all my May RMBS positions.
ReplyDeleteI like that trade, now that the environment has changed I'm probably going with spreads instead of naked for a while.
ReplyDeleteI like the naked 17 puts, and for June the price is getting attractive. Only problem is I already have that position for May, so reluctant to add more naked till May expires (hopefully).
ReplyDeleteI'm naked puts for May so that's why I'm interested in a put spread for June. I wasn't filled yesterday at .32 for the 17/16 put spread even though that was the midpoint many times in the day. That stock has thinly traded options so market makers don't usually take you out at the mid point. I'll be patient.
ReplyDeleteWell, with today's downturn I couldn't resist. Sold the June 17 puts naked again for $0.93. This has worked well for me so far in May, so I'm giving it another go even though May is not over for me yet. Tried to get 32 cents for the spread in an account I am managing for someone, order never filled all day.
ReplyDeleteI did something similar, sold the JUN 15 puts for .39. I also got frustrated with my put spread not getting filled. IV is attractive again and other than a general market sharp sell off I like this trade, but since I'm still naked 18 strike puts for May I had to go further down the ladder to justify the additional risk. My rationalization was that the .39 I got for the 15's is more than the 17/16 spread I was trying to sell. A break even of $14.61 looks good on the chart considering earnings isn't until after JUN options expire, even if there is a good size market sell off. Last time we were sub $15 was JUL 09 and there looks to be more support points between 15.50/16.50. I only did 10 contracts so it's really not a large risk. If the MAY 18's expire worthless than I might try another spread for JUN.
ReplyDelete