The Humana recommendation was not triggered today because of the decline at the open.
The S&P futures are down -8 points tonight so it looks like a rocky open on Wednesday. I recommend we cancel the outstanding play on Humana. We may take some lumps at the open on Wednesday so there is no use adding to that pain with a new position.
Oil prices are nearly flat so the APC and RRC positions we entered this morning could remain safe. The other three positions in MHS, WTW and LO are well above the stops and those stocks have been bucking the market so maybe we will escape there as well.
The S&P has declined to lower support on the downtrend channel so any dip could be bought for a trading bounce but I am not betting on it.
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.