Sold 100 September puts.
I'm not sure if it is a good options play. Sell PUTS only when the volatility is pumped up...
If WLT drops to $11 or the volatility increases then you could be paying a lot more to cover those naked puts. The strategy is great, but I think the timing is wrong.
i'm not following. if they are $10 puts and he got a .95 premium, then premium will erode if the stock goes below $10 and he'll start losing money at 9.04. If stock never gets below $10, it's all profit.
can you explain what you needs to happen for you to make $ on this trade?
The stock price needs to stay above the strike price minus the premium received. $10.00 -.95= $9.05. Anything above that is profit.