An email received from an investor needs a reply as he got caught selling naked puts with an expiry date after earnings last week (Thursday Oct 8) in Domino’s Pizza Stock (DPZ).
This investor sold put options before earnings were announced only to watch the stock collapse and his profit suddenly turn to a large loss. The key to rescuing any position is first to stay calm and put in place a plan that will work toward still providing a profit while protecting your capital from taking a loss.
This strategy article is for FullyInformed members.
Rescuing In-The-Money Naked Put Options In Domino’s Pizza Stock
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Please read the full disclaimer.