This is a FullyInformed Members Put Selling strategy article that looks at rolling down strategies for naked puts. Put Selling is a great investment strategy but when market weakness enters the investment picture, investors have to decide how they want to weather the storm. With stocks continuing to slide this morning, a number of stocks I am holding will need me to decide whether to roll down naked put positions as they move into the money or whether I am comfortable holding these positions and accept assignment of shares if that happens.
As regular readers of my website know, I do nothing by chance when it comes to put selling. Every trade I make is planned prior to my entering the trade. Aflac Stock is a good example.
Put Selling Aflac Stock
I have been comfortably Put Selling against Aflac Stock and in particular my $49 put strike has brought in very good premiums. That is ending now as the unemployment numbers were poor on Friday and worries over the Japanese Yen are pushing Aflac Stock down. Analysts are quickly jumping in and talking up Aflac Stock. My experience has taught me that when analysts come to the rescue, the stock is in trouble.
In the case of Aflac Stock, there are enough factors weighing on investors to make them wonder about whether the stock can hold this level. There will definitely be some selling here.
Aflac Stock one year daily chart
Put Selling And Rolling Down Naked Puts Decisions
The decision to roll down naked puts is actually quite easy depending on how you approached the original Put Selling trade at the start. I enjoyed Put Selling the $49 put strike but as explained in a number of articles on Aflac Stock, the $49 put strike did not interest me for assignment. I want to be lower. The decision then has to be to roll down as the $49 put strike comes under pressure.
Put Selling Roll Down Strategy
This article looks at Put Selling rolling techniques as they apply to my Aflac Stock trade. I explain in this article my method for rolling down including how I roll down intraday to pay the least I can when buying to close my naked puts and how I aim to sell for the best put premium available on the roll down.
This Put Selling Strategy article is 6 pages in length with 2000 words. FullyInformed Members can can login directly through this link to read the rest of this Put Selling strategy article or Members can sign in to the full members site here. Non-members can join here.
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