Perhaps you should at least mention the fact that this is naked put sell that has option requirement that is marked to market daily. In down trending market this alone could put a lot of stress in the account. Also mention that the account must be approved for such option selling before it can be done.
TCK: I must be dim like RHW. Buy/Write is used to indicate selling covered calls as well as selling covered calls and goosing it with selling naked put either at the money or one strike down. So, I think the author could have been a bit clearer by outlining the exact option strategy used. Unless I do the calculations with the exact premium used, I cannot determine which one is used.
The key missing ingredient in this article to be of any use is what exactly is the option strategy you're talking about? Is buy stock, sell covered call at the money and sell naked puts at or one strike below? Or is it just Buy the stk and sell covered calls or what?
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I must be dim like RHW. Buy/Write is used to indicate selling covered calls as well as selling covered calls and goosing it with selling naked put either at the money or one strike down. So, I think the author could have been a bit clearer by outlining the exact option strategy used. Unless I do the calculations with the exact premium used, I cannot determine which one is used.
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