Two of the watch list plays were triggered today when the underlying dipped to the trigger price.

JNPR - Juniper $25.97

Juniper dipped to the trigger price at $26 intraday. The August $25 Put JUX-TE was bid at .65 when the $26 price was hit. I had hoped that a dip to that level would have pushed the price to $1.00 but the lack of volatility is depressing put prices.

LDK - LDK Solar $11.29

LDK dipped to the trigger price at $11 intraday. The August $10 put was bid at .60 when the $11 price was hit. Same lack of volatility kept the entry price low.

COF - Capital One $29.67 is still on the watch list with a trigger target of $28.

CRZO - Carizzo Oil & Gas $19.43 was stopped out when it dipped to $19.50 intraday. The option was ask at $1.05 when the stop was hit. That is a loss of a nickel on the position.

Jim Brown



Current Portfolio




New Recommendation - Speculative


None this week


Watch List


Conservative

COF - Sell August $25 Put COF-TE if COF trades at $28

Speculative

   None


Margin Requirements:

There are several different formulas for determining margin requirements for naked put writing. These are normally broker specific and some can require larger margin requirements than others.

Here is the most common margin calculation for naked puts.

100% of the option premium + ((20% of the Underlying Market Value) - (OTM Value))

For simplicity of calculation simply use 20% of the underlying stock price and you will always be safe. ($25 stock * 20% = $5 margin)