Tuesday, July 10, 2012

Sell SPY put backratios

Sell SPY put backratios @133.8
buy Sep 123 puts
sell 2x Sep 118 puts for credit

These short put backratios are a net bullish strategy, with an explosive downside profit if the underlying closes between the strikes. My earlier IWM strangle sale was ill timed.

Whoosh goes the market to the downside. The down move pushes me to positive delta on IWM and SPY (net long).

Long BRKB EWG XRT
Net long LGF IWM SPY
Net neutral TLT

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