Wednesday, August 11, 2010

Whoosh

Wow, what a washout day for the stock market. With all my hedging, my overall trading positions were down just a tiny bit. If the stock market decline continues, I will take on some water.

I do have some downside protection in the SPY Sep backratio spread (short SPY 88 puts, long SPY 96 puts), but that may not be that useful if there is an air pocket decline before August option expiration on 8/20.

Today, I was tempted to sell some options for September. I remind myself that fast markets are not my friend. Oversold often becomes oversold-er, and I already have plenty of exposure for August expiration, and some positions are coming into range of assignment.

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