Wednesday is not how I would have choreographed the perfect entry but at least it produced some strong moves.
We finally were triggered on that big list of plays but the entry method was not what I would have hoped. We always have trouble with gap opens and the deflation in put premiums on those gaps.
Fortunately not all the stocks on the list gapped up to the highs for the day at the open. Some actually opened respectably and then move higher. Almost all turned in strong days with Amazon the biggest gainer at +$9.
Because the gap and crap potential I moved almost all the stop losses. If we do roll over on Friday I do not want to ride them down.
Current Position Changes
New Long Term Recommendations
New Aggressive Recommendations
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)
Prices Quoted in Newsletter
At Option Investor we have a long-standing policy prohibiting the editors and staff from actually trading the individual recommendations in order to conform to SEC rules concerning trades.
The prices quoted in the newsletter are the end of day prices in most cases.
When discussing fills or stops the prices quoted are the bid/ask at the time the entry trigger or exit stop is hit. This is NOT a price that someone on staff actually got using a live order.
For entry/exit points at the market open the prices quoted will be the opening print. The majority of the time the readers are able to get a better fill than the opening print because of market maker bias at the open.
For trades with an opening qualification the prices quoted will be the bid/ask at the time the qualification was met.
All of these rules normally produce worse prices than an active trader would normally get. Because they are standardized there may be some cases where a price quoted was better than an actual fill. If you received a price that was dramatically different than what was quoted please let us know.