Thinking of selling some naked puts on LU. P&F has an informal support around $55 (last breakout point). WaddaUthink?
Sorry to take such a long time in responding to this particular post....
Been busy....
Now... when it come to "naked"... only with girls, I do not prefer naked calls or puts...
No need to expose oneself to risk unnecessarily, for that I would rather do futures, besides, the objective is to make money, with the least amount of risk. This is a key concept in my eyes.
I do realize the return is greatly enhanced, but again, the increased risk (particularly in volatile markets), is not warranted by the potential gain....
Indeed, the volatility enhances the "covered" call/put as the risk is indeed greatly reduced and the volatility makes the possible gain all that much easier.
.... a matter of perspectives.
As for LU.... since being called away last April, I have not re-entered LU.
Been in SCH, COMS, SPYG, FDX and others...
SCH has been extraordinarily generous to me.... even better than LU.
The premiums have been "lovely"....
Lu's premiums have been reduced substantially, (and so has its trading range).
You know.... there is a case to be made for stocks "about to split"... expectation (prior to it)....depression (after it).... renewed vigor, (after depression)..... Almost like a human.... he he he.
Not because the split adds any real value to stocks... but the expectations increase.... hence volatility.... hence size of premiums, hence.. possibility of profitable trades... increase as well.
Just my opinion. |
