Wednesday, June 13, 2012

Cover short LGF calls

Buy back short LGF Jun 13 calls LGF @13.6
Yesterday's close over 13.50 triggers my mental stop. Selling these calls on Lions Gate was a foolish entry, and I am taking my lumps at a huge percentage loss. I am still short Jun 13 puts, Jul 13 strangles (put & calls) Jul 12 puts, Sep 13 puts. I have a limit order to buy back the short Jul 13 calls too, but it hasn't filled yet. (edit: order was filled)

The tactic of selling LGF Sep puts to add more delta didn't work out because expiration is this Friday. Looking back, perhaps, a mental stop on a close over 13 for these short calls. Or better still would have been to avoid the panic on the technical selling. Best would have been to buy calls or LGF stock on the spike down. With the hindsight lens, the recent 17% two-day spike down may have been done to trigger some large stop-loss orders.

Speaking of selling calls, my recent sale of GLD calls isn't working too well either and I am now net short gold. That GLD call sale was right after Ben Bernanke's comments sent gold lower.

Long BRKB, GNC, LGF
Net long IWM, SPY
Net short GLD

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