Closing AEO and TEF Option Trades

And here I thought we were just going to coast into year-end …

As mentioned in my portfolio review, I was looking to close out a few naked put positions which had minimal value left. I closed out my TEF and AEO naked puts on 10/31 and good timing too in the wake of the ongoing drama surrounding Greece. I think TEF may be especially volatile in the coming months as the stock responds to Europe headline news so it made sense to pocket the gain (orig cost $1.70, closed at $0.20) and if it heads back down to the $18 level, we’ll run it again.

AEO had no value and little time left on the contract but I still chose to close it out to ensure I had no exposure. While the stock may be cheap below $10, I’m not hankering to own it and if it starts sliding that way again and I wind up owning it, I’m at least going to extract another naked put premium.

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