I bought back my short GM puts early on expiration Friday. In this case, it turned out running for the exit was a good move as the persistent selling continued all day and GM closed well below my strike price of 30. Had I held on my tiny profit would be a loss, plus another commission. The puts I sold on WFR expire worthless, so I bank two small profits today.
The broad market continues to be weak, so any profits for longs are welcome. Gold had a tough week, as did oil. It doesn't look like a low risk play in either of those areas. Those that like to roll the dice can go ahead, I'll wait for a clearer opportunity.
KMX CarMax in the news, with Warren Buffett announcing a large position. A retest of the recent lows would be a good entry point. Put sellers can simulate that by selling the puts at that strike. Round number support at 20 might be another place for longs to look. As always there is a rarely an exact science or magical formula.
Positions: MRK, T hedged longs
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