Today's rise in APC on news of a deal with Algeria places me in an odd and uncomfortable position. I react by selling APC Apr 75 puts APC@86.7. This adds delta, but still showing delta negative for a net short position.
Early in the week, my short Mar 80 puts were the uncomfortable part, as APC declined to 81. Now with a rally to 86/87 those puts are near worthless but the Mar 90 calls I sold as damage control are now deep in the red. I could close out everything. My latest move hopes that resistance and support levels hold and APC stays in a range between 80 and 90 at least until next Friday.
I also sell IWM Apr 70 puts IWM@81.1. As IWM goes up my delta goes more and more negative. I adjust by adding some positive delta by selling puts, but still shows net short. Some of the these latest damage control moves are not working out like I expected. The strength of the bounce back has surprised me.
Long IBM IWM MCD SPY XRT
net short APC, GLD
* long BRKB
* short GDX
* delta is near zero on these positions
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