I’ve been on a bit of a put option selling spree recently. Even as the market as a whole has continued relentlessly higher (and become increasingly overvalued by several measures), market sector rotation has presented some opportunities to sell naked put options on some stocks trading at or near reasonably tempting valuations in currently out-of-favor [...]
This week’s options expiration held few surprises for me, as all of my short April put options were well out of the money going into it – and had been so for some time. I could have bought them back and realized almost 100% of the profits many weeks ago if I had wanted to [...]
As the market continues to “melt up,” trying to keep up with it by selling put options against stocks remains a challenge. It’s a “double whammy” – from both option volatility and stock valuations. Low volatility means reduced option prices and greater temptation to sell close-to-the-money put options in order to collect decent premiums. But [...]
