I cover my short March 90 puts for a small loss. TLT has dropped about six points since I got in. I could have waited for my stop loss price to be hit. However, the TLT options often have wide spreads. I saw a 10 cent spread on my option and hit the ask. The bid was the same as when I got in, despite the big drop in the underlying.
I don't like the way bonds are trading. It used to be that bad economic news would help the bonds, but it hasn't been that way this week. The 50-day moving average just got taken out.
As for the stock market, the 5-year chart looks like crap, and shows the potential for a lot more downside. That said, short term, if SPY goes back to the low at 74/75, it may be worth a look on the long side. It depends on how it gets there.
No positions
No comments:
Post a Comment