Repairing naked puts XBI ETF

In a message on twitter, an investor asked for some information on his XBI ETF position.  His question is on rolling short put options forward.

The investor is holding a number of short put options against XBI ETF which is down 41% from its 52 week high. His questions are on these topics:

  1. understanding more on rolling short put contracts positions forward
  2. a method for identifying support levels in XBI ETF
  3. how to setup Put Selling strategies using those support levels
  4. how to roll positions almost indefinitely in XBI ETF
  5. how to protect while still trying to profit in a decline

This strategy article is for members. It is 2800 words in length and requires 9 pages if printed.

  The rest of this strategy article is for FullyInformed members.

Understanding Rolling Short Put Options – Investor Questions On XBI ETF

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.