New position just initiated near end of day Monday. Sold the weekly MOS 55 put for $0.21. The motivation and theory behind this trade is essentially the same as the POT naked put from last week. MOS is a stock I have owned before and am comfortable buying at 55 if I am assigned. Did 5 contracts so it's just a small gain if it works out, but odds are favorable showing only 13.6% probability of my being assigned at the moment.
Many of you have been reading this blog may have noticed that my blogging frequency has increased over the past few weeks as I got short the market. As you can imagine I am down money since getting short the market, this is the time when most people pull away from posting. But my goal is to stay active and involved and show you that trading is not always rainbows and butterflies. It is times like these that the things I have been sharing over the past couple of weeks are so important. You need to trade small relative to your account. I have a decent short position in the market and my portfolios are set up to make some awesome returns if we finally turn lower. But something I would like to point out is that my account is 70% Cash. I learned a long time ago how important it is to live by the rules you preach. Because of my discipline I am able to continue to hold my positions, I have time and capital on my side. I can't stress enough how important it is not to get to big....
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