The market rally in March allowed us to capture plenty of profits.

We had some very successful plays in March that allowed us to overcome some unexpected surprises. We finished the month with collected premium of $7.43.

One of the first surprises was a sharp drop in BUCY on March 15th that cost us 69-cents in premium when we were stopped. The same sudden drop in coal and miners also knocked BHP and WLT into the loss column as all were stopped on the same move.

The biggest loss for the month was Interoil on March 26th. IOC fell -$13 intraday on various reports the company was scamming investors, grossly misreporting their assets and transferring restricted stock to other entities to be sold without restrictions. Needless to say this was a blow to this fast rising stock. The stock was at $72 with our stop at $62.50 when the decline occurred. The unexpected dip cost us 73-cents in premium but it could have been much worse. I am glad to have escaped the position with a minor loss.

We entered 18 positions in March and all but five were closed with a profit.

We ended the month flat because I am worried that the first couple weeks of April could be rocky. I would rather be focused on buying any dip with new positions instead of managing potential losses on existing positions.

Jim Brown



Current Portfolio


No Open Positions


March Recommendation History



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Click here for December Results

Click here for November Results

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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)


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 just send us an email and we will use your price.