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!

Sharing is caring!

Wrote Put QUALCOMM Incorporated (QCOM)

Never miss another opportunity to devour prey!

4 thoughts on “Wrote Put QUALCOMM Incorporated (QCOM)

  • February 5, 2016 at 4:21 pm
    Permalink

    Raptor,

    I have been trading a ton of options this year and hope to post about them in the next few days. A few days back I bought a couple of QCOM calls and then closed out the position pretty quick. Keep devouring!!!

    MDP

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.