Monday, August 08, 2011

Cover short puts SPY

More financial carnage, as I cover more short SPY puts, Aug 112 puts, and Sep 113 puts with SPY@113.7. The percentage losses are -1800% and -2500% on the dollar value of the options. I have too much risk on the table, and with short puts, my delta increases as the market declines. Yes, 113 is a support level for SPY, but tape action is bearish. I hate to cover, but it is the rational choice. I still am long SPY delta with two short backratios, one for Sep, and one for Oct.

I don't feel very smart today, and my recent monster losses reflect that feeling.

Long GLD, SPY, TLT

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