Today's decline may have been just some expiration volatility but I am raising the stops on everything just in case.

The market gave traders a dip to buy but there was no rush to take advantage of the opportunity. Volume was very low and showing no conviction by the sellers. I personally think it was just some option expiration volatility with help from the FedEx warning and some weaker retail sales.

Of course the market does not care what I think and will do whatever it wants. To protect us from any further declines I am raising all the stop losses. See the graphic for the new levels.

Jim Brown



Current Portfolio




Current Position Changes


None


New Recommendations


None


New Long Term Recommendations


None - Waiting for a "real" market dip, not a one day wonder


Current Aggressive Recommendations


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)