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March Option Writer Risk Management

HAVING TROUBLE PRINTING?
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MON - Monsanto is taking a thrashing today. So I want to make sure we are all on the same page as to where the risk management levels are located.

STRIKE PRICE Stop @ 105

COST BASIS Stop @ 103.75

TECHNICAL Stop @ close below 112.25 (alert! possible close of half) 103.89 (full stop)

P/L Stop @ $111.25 (see below)

The thin red lines are the estimated price at which the put position will be at a loss of $125 and the current price, respectively. The white line is the P/L curve as of today. Obviously, as the price increases the position become more and more profitable until it reaches nearly max profitability. The thin green line is the P/L curve on expiration. I hope this helps.

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