March options expiration, naked puts in SLW, LO, POT, MOS & more

This month’s options expiration produced full profits across the board for all my expiring naked put option positions (see details below) – no surprise given the market’s continued buoyancy even in the face of various negative news events. The market’s resiliency however has also limited my put selling opportunities, and as a result I have only one new naked put position to report since last month’s expiration (see below).

Looking ahead, I have seven expiring naked put options positions in April. All but one are currently trading comfortably out of the money (OTM) so – barring a significant market downturn between now and then – I don’t currently anticipate making more than one adjustment to those positions.

Options expiration results:
The Carlyle Group LP (CG) – Some March 25-strike put options that I sold against CG on 9/13/13 (for $2.70), as part of a roll-down/roll-out risk reduction adjustment of an existing $30-strike naked put position, expired OTM for a total 12-month net return of 3.4%.*

Lorillard (LO) – A March 40-strike put option that I sold against LO on 7/26/13 for $2.95 expired OTM for an 8-month net return of 7.1%.*

The Mosaic Company (MOS) – A March 40-strike put option that I sold against MOS on 7/30/13 for $4.80 expired OTM for an 8-month net return of 12%.*

Potash Corp. of Saskatchewan (POT) – A March 30-strike put option that I sold against POT on 7/8/13 for $4.10 expired OTM for an 8-month net return of 13.7%.*

STAG Industrial (STAG) – A March 20-strike put option that I sold against STAG on 8/16/13 for $2.25 expired OTM for a 7-month net return of 11.2%.*

Valley National Bancorp (VLY) – Some March 10-strike put options that I sold against VLY on 9/19/13 (for $0.80), as part of a profit-taking roll-out of an existing $10-strike naked put position, expired OTM for a total 12-month net return of 13%.*

Williams Partners L.P. (WPZ) – A March 50-strike put option that I sold against WPZ on 8/8/13 for $4.70 expired OTM for a 7-month net return of 9.2%.*

New positions since last month’s expiration include some January ’15 23-strike naked put options in Silver Wheaton (SLW).

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