That was an ugly close with major givebacks of early gains and in some cases some large losses.

Nothing hit our stops but there are several that came close. If we open down on Friday we could lose POT and MOS. Both should be close to a breakeven or a small gain if we are stopped so unless there is a major gap down that skews premiums we should be ok.

The Precision Cast Parts (PCP) play finally traded under 25-cents to close that position for a $1.05 profit. It hung at 28-cents bid for three days before finally breaking lower.

I put an exit target on IOC at 25-cents after the big gain today.

No new plays tonight given the market decline. No stops were changed.

Jim Brown



Current Portfolio



Current Positions


PCP - Precision Cast Parts
Closed at 25-cents or less.

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

FSLR - First Solar
Maintain the stop loss at $108.00.

IOC - Interoil
Bid to buy back the option at 25-cents or less.
Maintain the stop loss at $62.50.

POT, CREE - No Change


New Recommendations


None Today


March Recommendation History



Click here for February Results

Click here for January Results

Click here for December Results

Click here for November Results

Click here for October Results

Click here for September Results

Click here for August Results


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)