Out all at 3.20 average. $0.57 per. Logic is to get out of Sep07 and into another weekly tomorrow. Will post to a new thread.
i doubt any of us who gave out reservations of the put selling strat would gloat. most of us has seen from years past (ie spx credit spreader...etc etc) have heard how it all sounds nice the way its explained by the seller until the thing you expected least actually happens. i have my share of puts sold on right now on stuff i don't mind owning in my other ib account; but these are atm sales with many more cheap puts bought (+3 x -1 type stuff) ..also a bunch of flies going on too...but never unbounded short vol..ever.
I would never sell a naked call. But a naked put is another matter. I've been selling them for 20 years, and buying them occasionally. Granted that when you want to close a deteriorating naked put, you may wish it were hedged. But if you don't mind owning it at your strike, and you didn't select a crazy stock and/or over valued price, and it's not an over debted piece of crap you selected, because it payed a fantastic credit.... Then owning it for a period of time, collecting dividends and selling covered calls,... is just not that big a deal to me. However, if a ton of stocks get put you AND you are on excessive margin.... that's another issue. It's not stock dropping that kills investors. It's being on excessive margin when that occurs that kills them.
I will see your Maria Bart from CNBC, and raise you a Sandra Smith from FBN (Fox Business News) http://www.gogomag.com/cgi-bin/tvheads_viewer.pl?tvheads781388&781388&Sandra
Sold puts on $22 CNX for Jan. Credit $1.05 otm safety cushion.... 25% Annualized % return.......... 13% http://finance.yahoo.com/q/bc?s=CNX&t=5y&l=on&z=l&q=b&c=
Seems like a reasonable trade although a lot can happen between now and Jan. Did you enter the trade without consulting diaoptions? He is the forum tool, as you know. Are you the 14 contracts that have traded?