After the market weakness today I am raising some stops.

No earth shaking movements in the portfolio today but First Solar declined -2.57. After the big gain on Tuesday this was just a give back but I am raising the stop to $108 just in case.

Mosaic gained +1.14 on a down day in the market. Call options for MOS were exploding in volume with 28,000 April $60, $65 and $70 calls trading compared to 3,000 puts. Could be some news coming that has not yet hit the wires.

No new plays tonight given the market decline. Check the graphic for new stops.

Jim Brown



Current Portfolio



Current Positions


PCP - Precision Cast Parts
Bid to buy back the option at 25-cents or less.
Maintain stop loss at $118.50.

MOS - Mosaic
Bid to buy back the option at 25-cents or less.
Raise the stop loss to $57.50.

FSLR - First Solar
Raise the stop loss to $108.00.

POT, IOC, CREE - No Change


New Recommendations


None Today


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)