A low VIX and elevated market continue to make for a challenging environment for selling put options. Despite that, I’ve added a number of new naked put positions (see below) since my last post.
Meanwhile over the last couple of months I had a significant number of expiring naked put positions that had been initiated late last year/early this year, the vast majority of which ended up expiring out of the money (see below). I was comfortable letting myself be assigned the few positions that expired in the money (see below) as longer-term investments.
Looking ahead to next month I have seven expiring naked put option positions. Most are comfortably out of the money, but a couple are currently near or in the money and I’ll be needing to decide whether to potentially take assignment of them or perhaps roll them out to try to extract more option premium from them.
Options expiration results:
My June and July-expiring naked put options positions in the following stocks expired out of the money, leaving me with full profits in the positions: American Capital Agency Corp. (AGNC), American Realty Capital Properties (ARCP), Cisco Systems (CSCO), EV Energy Partners LP (EVEP), Equity Residential (EQR), Goldcorp (GG), Healthcare Trust of America (HTA), International Game Technology (IGT), The Macerich Company (MAC), Medical Properties Trust (MPW), NuStar Energy L.P. (NS), Omega Healthcare Investors (OHI), Potash Corp. of Saskatchewan (POT), Sandstorm Gold (SAND), and SeaDrill Limited (SDRL).
My June and July-expiring naked put options positions in the following stocks expired in the money, and I was assigned the options and put the underlying shares at an average near breakeven cost basis: Healthcare Trust of America (HTA), Rogers Communications (RCI), and Global X Uranium ETF (URA).
Adjusted positions since my last post include closing out (buying back) a naked put position in Compañía de Minas Buenaventura (BVN) for a small net total profit, and rolling out an existing naked put option position in Annaly Capital Management (NLY) to reduce a current unrealized loss to breakeven.
New positions since my last post include December, January and February-expiring naked put options in American Realty Capital Properties (ARCP), Chicago Bridge & Iron Company (CBI), Deutsche Bank AG (DB), General Motors (GM), GNC Holdings (GNC), Lorillard (LO), Lumber Liquidators Holdings (LL), Myriad Genetics (MYGN), North Atlantic Drilling Limited (NADL), Natural Resource Partners LP (NRP), Realogy Holdings (RLGY), Rio Tinto plc (RIO), Sturm, Ruger & Co. (RGR), Vale S.A. (VALE), Vanguard Emerging Markets Stock Index ETF (VWO), and Telefonica Brasil, S.A. (VIV).