Rolling naked put

Discussion in 'Options' started by arm0211, Mar 28, 2018.

  1. Nobody is paying attention - it's Miller Tyme! ...or a beer that actually tastes good... :D


     
    #21     Mar 29, 2018
  2. ironchef

    ironchef

    BXM beats SP500 on a risk adjusted basis.
     
    #22     Mar 29, 2018
    Option_Attack and misterkel like this.
  3. spindr0

    spindr0


    Options trading involves weighing the potential reward against the potential risk along with associated probabilities. All I attempted to do with my IBM example was to explain to the OP what he gets for rolling his short put when it's nearing ATM versus the inferior result if he waits until it's ITM. It's his decision whether this strategy is a :thumbsup: or a :thumbsdown:

    I'm not a big fan of CC-s and NP-s either. The imbalanced R/R is a poor starting point. There may be exceptions such as selling a short put to acquire the stock at a price but I'm no longer an acquirer :)
     
    #23     Mar 30, 2018
    tommcginnis and Option_Attack like this.


  4. RE: April06 IBM 152.50 puts.

    • IBM currently at 153.68
    • Stopped out early on Monday - one day after trade opened.
    • Position has swung back to OTM.
    • Of course anything can happen during the next two days.
     
    #24     Apr 4, 2018