Collect Premium in this Market

The market has been going through big up and down swings over the past week or so with the uncertainty coming out of Washington, and until the debt ceiling issue is resolved we will likey see the same with a bias to the downside.  However, any resolution that is made could sent the markets sharpy higher, so in the short term we're looking for sideways plays where we can benefit from markets chopping along.  

Right now we see an option play on Decker's (DECK) that we can execute to collect some premium with relatively low risk.  We are selling the November $50 Puts on Deckers at .80 cents.  Decker's has a 14.5% chance of falling below $49.20 at which point we'd get put, before November expiration.  This is a play where we'd like to see these options continue to decay from now through November so we can keep the premium.  If volatility continues and the markets move to the downside, a sharp decline in DECK could cause an increase in the price of these puts, thus hurting our position.  If the stock trades below $55 we'll need to decide if we want to buy back the options or potentially own the stock.  

DECK announces earnings on 10/24, and there is always a possibility of a disappointing quarter.

For now, we're very likely, to the tume of 85% to collect the premium and keep it.