Thursday, April 21, 2011

Buy SPY (sell puts)

Buy SPY via selling Jun 119 puts, SPY @133.8. I open a June position on SPY. I am already short several layers of May puts (bullish bets) and have a Jul vertical put spread (bearish bet) as a hedge. SPY looks like it wants to spend some time basing at the recent highs. Support at 130 and 125.

GLD nearing my target of 147. I may let it drift a bit higher before exiting my calendar spread, because time decay is in my favor as I am short the May 147 calls, and long the Jun 147 calls.

Bonds have been volatile this week due to the S&P outlook. I still think a range is the most likely scenario and have positioned myself accordingly.

Long EEM, GDX, GLD, IWM, SPY, TBT/TLT
TBT/TLT = short strangle on TLT

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