FSLR rallied again today and we were able to close the trade at 50-cents or less with a $1.58 profit.

I probably could have waited another couple of days to squeeze another quarter out of FSLR but when we get greedy we set ourselves up for big losses. The longer you are in a given position the better chance you have of something going against you.

I am recommending we close the Potash position at the open on Tuesday. POT is slowly getting weaker and lost ground today despite gains in the sector. By closing at the open we can capture about a 93-cent profit and limit our risk as we near month end.

I am putting a target on CREE of 25-cents. It is nearing the high end of its recent range and hopefully we can get out of that position at month end as well.

No new trades today. I am expecting the market to weaken on Thursday if not before.

Jim Brown

Current Portfolio

Current Positions

POT - Potash
Close this position at the open on Tuesday.

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

FSLR - First Solar
Position closed at 50-cents or less for a $1.58 profit.

CREE - Cree Inc
Bid to buy back the option at 25-cents or less.
Maintain the stop loss at $68.50.

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)

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.