I'm still waiting for this pullback, but the naked puts are still working for me. Still trading credit spreads and long some stocks. Hedging by buying some puts on the S&P to keep my delta down, not sure how smart this is but its been working so far.
Aren't we all waiting for the pullback? Seems ridiculous at this point, but the market is never rational is it? How are you finding your naked put candidates? How far below do you set your strikes?
ReplyDeleteIt is crazy. I have my list of stocks I've been trading for quite a while. Just go through it and look for something with a half way decent credt around .75 or so and a low delta(usually trade 2 or 3 contracts). I take look at the charts and set the strike a few dollars below what looks like good support. I've had a couple get exercised but within a week or so the stock has rebounded and I made out pretty good.
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