Notes: I already have some January on, and there is no February currently, so going out to March with 30-day still >35% at 36.5% and expiry specific at 38.4%. As with my other IRA short put trades, I'm fine with getting assigned, selling call against, particularly since it has a small dividend to pay you while you wait to exit any covered call profitably. ROC: 2.64% at max as a function of notional risk; 9.6% annualized at max.
Trade closed manually
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Out for .23/contract here with 66 days to go. .85 ($85) profit per contract; 2.1% ROC as a function of notional risk.
@NaughtyPines, So how did you short a put? I can only buy calls or longs.
I could short a short etf, ProShares Short S&P Regional Banking ETF but I don't think I can put a negative on an option.
Normally there is puts and calls at each value, so why short a put?
NaughtyPines
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@Chaython, You need authorization from your broker. It can either be (a) cash secured; or (b) on margin. With cash secured, you'll need to pony up the strike price minus the credit received in buying power . In this particular example, you'll need $4200 - $108 or $4092 in buying power to put on this trade if you're trading subject to being cash secured. On margin (depending on the broker), the buying power effect is usually about 20% of the strike price (here, .20 x 42 or $840 in buying power.