Lets get naked!

I hope no one was disappointed that they did not find any lovely ladies or studly gents dancing around without any threads on. But that's not why we are here now is it? Nope. So why are we here you ask? Well I'm going to tell you. We are here to trade information about stocks, technical analysis, options and market psychology. I chose the title of Dancing Naked On Wall Street mainly because my favorite strategy is selling naked puts and then doing a little dance like a touchdown shuffle on expiration day.

Of course within my trading account I do many different investment techniques, sometimes I am long, sometimes short, most of the time some form of option. I have had trades consisting of iron condors, butterfly spreads, calender spreads, straddles, strangles, you name it been there done that! But what I have found that works for me the best is a simple naked put or one legged vertical spread to those in mixed company. Now I don't just sell puts on anything, I have a method to my madness I do.

1. I search for good fundamentally sound stocks or ETF's


2. I use a simple moving average of 30, 50 and 200 combined with a Person Pivot Point monthly projection where the price action is above the moving averages and a strike price is between somewhere below the S1 of the current month and S1 of the projected month assuming that S1, PP,and R1 of the projected month are all above the respective levels of the current month.


3. I then look to see if there are any strike prices within that area that have a probability of expiring (P.O.E.) in the money of 20% or less. That gives the trade a 80% chance or greater of being successful.

Okay, did I loose anybody? The guy in the back row looks lost so maybe this chart will help summarize things.