Ever put seller has come across periods when their naked puts options are in the money and they need to be rolled to avoid assignment. There are lots of strategies to consider when rolling in the money naked puts options. You can roll them down, roll them out, roll and reduce them, split them up, roll and increase puts sold, and many other rolling strategies that can be incorporated. It all comes down to your put selling strategy and your goals.
Rolling In The Money Naked Puts With Fast Stochastic
When I roll my in the money naked puts options forward on the same day, I like to use the Fast Stochastic to time when to buy to close the existing in the money naked puts options and sell to open the new in the money naked puts options positions.
It is a strategy that has served me well for squeezing out that last little bit of put options premium. It can also be used not just for rolling out options but also to time buying back and selling again within the same day in the days prior to options expiration.
I use this same day in the money naked puts options rolling strategy to try to get the best put premiums I can when rolling. It’s basic, simple and once used it can become a powerful tool to boost put earnings. I used this strategy today on my Intel deep in the money naked puts options when I had to roll them out from December options expiry into February.
This same strategy can be designed around the relative strength index, the ultimate oscillator and I am sure probably other technical tools as well.
Sometimes .25 cents doesn’t seem like a lot extra to earn but done enough times in a month and it can really add up.