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