total worst case scenario would be 300K of stock put to me, but the worst I have dealt with this year is 3 stocks put to me at once; one of which was WAG at $32 which I sold in a few weeks at 36.07 after the ESRX announcement which was only a matter of when not if, one was WLT which I sold last week when it bounced, and one was NKE which I sold at $96.77, down .36%, but I turned around and sold the NKE Sept. 85's, so I will be ahead on that stock unless the market caves in. Again, owning NKE at $85 will not be a disaster for me.
I sold the JCP $20 puts last Thursday, got a little nervous when I saw it trade pre-market, but counted on some good short covering, and made a decent profit overnight.
Knowing I have the vast majority of my portfolio creating an ever growing income stream is comforting, and allows me to feed my old trader mentality through options on stocks that would make sense to hold for a while if necessary, but the main point is to bank the premium from the options, not own the stock. |
