Put selling on SVXY

Seeing that XIV and SVXY have a long term positive bias, I have decided to sell puts on SVXY as well. There are a lot of swings on it, so for this trade, i will relax Teddi's conditions on closing as it is riskier and needs larger swings.... doing ok till now - need to go into the 'bad' territories to see if this really works...

	Trade		Under.	Value	Expiry		Contracts	Strike	Price	Comm	Cash
7/23/2013
7/24/2013	1	Sold	SVXY	$102	08/17/13	Put	1	$90	$2.01	$11.0	$190.00
8/2/2013	-1	Brought	SVXY	$113	08/17/13	Put	-1	$90	$0.55	$15.0	($70.00)
	2	Sold	SVXY	$113	08/17/13	Put	1	$102	$1.50		$150.00

Rules employed for put selling

Following are the rules that I will apply:

OPENING (mostly from Teddi but modified a bit)

• Take solid stocks - Teddi says don't use stocks worth over $120. I am using IBM though
• Find out stocks which crossed their lower bollinger bands 
• Confirm with the K/D indicator that they are firmly oversold
• Check if MACD shows positive momentum - this one seems less useful
• Check out flattening of 10 day EMA - also it should be lower than 20 day SMA and 30 day SMA both

CLOSING (all from Teddi) - http://www.fullyinformed.com/

• Put offer to buy back the naked put at a 75% profit if it was close to ITM, 80% if it was OTM. This offer should hold till 2 weeks before expiration. Afterwards, keep reducing the order, till you reach the expiry date. Lower by 10% each day.
• If trade turns against you, close at 20% loss for ITM, 25% loss for OTM
• If you are in profit zone, and trade turns against you, close immediately 

Put selling

I am following Teddi's put selling strategies (http://www.fullyinformed.com/). I am quite in sync with the kind of trades she suggests and will be replicating them here for my own records. These are my trades till now - small earnings but confidence builders

	Trade		Under.	Value	Expiry		Contracts	Strike	Price	Comm	Cash
7/9/2013
7/10/2013	1	Sold	IBM	$193.00	08/02/13	Put	1	185	$2.17	$11.00	$206.00
7/18/2013	-1	Brought	IBM	$198.00	08/02/13	Put	-1	185	$0.18	$11.00	($29.00)
7/18/2013	2	Sold	INTC	$23.15	08/17/13	Put	9	22	$0.24	$9.85	$206.15
8/7/2013	-2	Brought	INTC	$22.70	08/17/13	Put	-9	22	$0.08	$9.85	($81.85)
8/7/2013	3	Sold	IBM	$188.45	09/06/13	Put	1	185	$2.06	$9.85	$196.15