Thursday, July 29, 2010

Cover short SPY puts

I cover my short on SPY Aug 95 puts for a decent profit, SPY@109.6. This reduces my exposure, leaving me short SPY Aug 100 puts, and Aug 87 puts, also short IWM 58 puts. I also have a SPY backratio for September.

Because of the two day stock market decline I am now net delta long SPY. I am a nervous long, because historically, August can be a volatile month, more so than July or September even. In hindsight, my IWM put sale yesterday was ill-timed as the bottom has dropped out of stocks.

Long BRKB, GLD, IWM, SPY*, TLT*
SPY offset by SDS, net long SPY
TLT offset by TBT, net long TLT

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