john,,,,,first, i determine number of shares I WANT TO OWN, and use short puts spread out over three months with expiration of 3 months, ie. if i want to own 900 shares and it is dec i would have 300 short puts for march expiration when jan comes i do another 300 for april expiration and in feb i do another 300 for may expiration. that way if the stock is dropping over those three months all 3 lots of the short puts would have different strikes. second, i place contingent orders at the time of trades that cover those short puts with long puts. 50% of the shares covered with a 5% drop and the other 50% covered with a 10% drop. i have a short paper in the file section explaining how i manage strategy....
--- In ConservativeOptionS
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> dr joe
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> I would be fearful writing naked puts as far in the future as you. It must be experience that tempers the nerves. Doing a spread for protection looks expensive.
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> John
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> Â
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> --- On Wed, 12/23/09, joe & leigh <gass20@...> wrote:
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> From: joe & leigh <gass20@...>
> Subject: [ConservativeOption
> To: ConservativeOptionS
> Date: Wednesday, December 23, 2009, 12:10 PM
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> assigned on eem dec 35 premium received 2.97
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> current short puts
> eem: mar 10-40 strike premium 2.48
> qqqq: feb 10-43 strike premium 1.74
> iwm: feb 10-60 strike premium 1.41
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> drjoe
>
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