My goal is to provide relevant commentary on topics of options investing, risk management and financial planning in a format that is easy to understand and thought provoking.
Tuesday, September 22, 2009
September Bull Put Trades Expired Worthless
All our Index and ETF September Bull Put trades expired worthless last week earning 8.1% and 5%. The markets rose every week after these trades were filled. I expect the markets to continue rising so we will continue trading Bull Put trades.
August Trades Expired Worthless
Fortunately the RUT Index final set was 576.88 so those subscribers who did not exit the call side of our Iron Condor trade were lucky and all their options expired worthless. But since the index did exceed our exit price of 570 earlier in the month many subscription exited the call side for a loss. By exiting early we eliminated any risk of being ITM (in the money) at expiration. Subscribers who also traded the 480/490 Bull Put were rewarded with an additional 5% return. Going forward when the market moves in one direction I will move up a spread trade to earn additional credits like we did this month with our Bull Put trades.
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