This is a strategy update article for FullyInformed Members who are using the Biweekly Put Selling Strategy or other Put Selling strategies on Apple Stock. This article discusses the method being used to roll down naked puts that once sold have ended up in the money.
The article studies the roll down of August 27 in Apple Stock naked puts. On August 26 I had sold the Apple Stock September 13 options expiry $490 put strike for $8.20. The very next day Apple Stock pulled back and fell right through the $490 put strike. This meant the naked puts in Apple Stock at $490 had to be rolled down to stay consistent to the bi-weekly Put Selling strategy.
This article discusses how the roll down decision is made and how I roll the naked puts down intraday using the 5 minute time frame, Bollinger Bands and Volume indicators.