I wrote a cash secured put on Qualcomm (QCOM) on Monday.

music selection:  “Shakin'” — Eddie Money

The previous written put at the 43 strike expired worthless.  I have rolled down and out, targeting 12% annualized with as  much downside protection as possible.  The market remains guilty until proven innocent.

I sold QCOM160311P00040000 for 60 cents.  The trade will be in force 40 days and yields 13.69% annualized.  Versus the spot price of 44.65 at the time the contract was written, the trade has 11.76% downside protection before a loss will be realized.  I feel pretty good about my chances here.  I  had originally put in a bid to sell two contracts but only one cleared, so I’ll settle for 60 dollars in premium instead of 120.

I remain committed to keeping a portion of my asset allocation in written puts (covered calls when assigned) as I think it offers a good ratio of risk to reward and lowers volatility on the portfolio.

Devour your prey raptors!

Wrote Put QUALCOMM Incorporated (QCOM)

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