Option Investor

March Option Writer Risk Management

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MON - The agricultural sector is selling off very aggressively. Monsanto gapped down this morning and tried to fill in up to the 105 level but couldn't hold. If you chose the strike stop at 105, the gap lower should have you out. If you used the cost basis stop at 103.75, you should also be out. The technical stop of 103.89 should also have you out. And finally, the P/L stop at 111.15 as identified by the Risk Management screen shot should have had you out long ago.

ICE - The Intercontinental Exchange put position is near its strike price of 125. The problem is that this position was profitable a couple of days ago. The risk profile chart gave us a P/L target of 128.5. The cost basis stop is 123.10.

This is obviously a very difficult environment to trade short puts and calls. I won't be adding new positions for March. All positions will be April expiration from here out.

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