Successfully Trading Cash-Covered Puts ... Matti V.

Ric,

I just closed OPEN naked put position for a nice $635 profit. I still have CSTR, MED and BIDU naked put positions. I'm new to writing naked puts and not sure when to close a position so I'd really appreciate if you could tweet also when you close a position.

Next, I'm starting to study your day trading method, which seems excellent. I think your TSM service is the best value that I've seen.

Thanks.

Matti,

As a rule of thumb, I close a naked put position when I've earned 75% of the premium. In fact, as soon as I open the position, I put in a GTC order to close at 75% of the premium. At the other extreme, I use double the premium as a stop loss.

Ric