Selling naked put

Tal priel said:
Hi,
I'm a rookie in the options trading world , i'm trying to find info about selling naked put strategy.

Where can i get stats on how often does a put get assigned before
expiration date?
also info about getting assigned by distance between the strike price and the in the money price of the stock

Thanks in advance,
TAL
More...
Hello Tal,

For a good estimate, look at the probability of the option being in the money on the options chain for the strike you are selling. I often sell 10 delta puts, so the put has a 10% probability of expiring in the money, or inversely, 90% probability of being out of the money.

The probability that the strike will be touched is roughly two times the probability of expiring in the money, so a 10 delta put has a 20% chance of being touched during the option's lifetime. Hope this helps.
 
Thanks for the response.
another thing that i want to verify is the effect of seliing coverd calls on a stock that i own.

I own 200 units of share and sell 2 call contracts, why i'm seeing that my Maintenance Margin
increased? its not suppose to stay the same?
 

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Tal priel said:
Thanks for the response.
another thing that i want to verify is the effect of seliing coverd calls on a stock that i own.

I own 200 units of share and sell 2 call contracts, why i'm seeing that my Maintenance Margin
increased? its not suppose to stay the same?
More...
Interactive Brokers? Attachment doesn't work ( for me at least)
 
One of my trading partners from the one of the 90's mIRC rooms started selling naked puts on dirt cheap stocks during March He finally got assigned some cheap stock of some stable companies at which time he started selling covered calls until they got called away. I was amazed at the options volume in 2 and 3 dollar stocks. I had pretty well stayed away from the market for 10 years after recouping my biggest loss. But in my prime trading time, 2 dollar stocks did not have options. Out for years because I no longer needed the money nor the stress.(Came back cause I miss the adrenaline) One he showed me(RIOT) had options all the way down to 50 cent strike. What he did was use an online stock scanner to find cheap stocks with weekly options. He would only sell naked puts of stock he was willing to buy. Between the naked puts and the covered calls, he did fairly good on 2 and 3 dollar stocks.
 
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Selling naked puts can be a great strategy if you will to take the shares at a key point of value that you like. If you goal is to just collect the premium with out ever wanting the shares then it’s probably one of the worst strategy’s ever
 
I got assigned for a stock that i now want to sell
if i write a call aginst the stock with a lower strike price than the current price
what can i lose in this scnerio?
the stock price 41 and i saw that 25 strike premium is about 23 , so my break even point is like 48 or that i'm missing someting?
 
I read about vertical spread strategies as a way to reduce risk of getting assigned .
The scnerio that i want to ask about is:
If i i first buy a call that expires in 30 days and afterwards (not simltunally ) sell call with same
expiration and with lower or equal strike price how does it effects my maintenance margin?
Can i "use" the long call to cover the short call in case of getting assigned to the stock?
 
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