Friday, August 17, 2012

Rebalance XRT (sell puts)

Sell XRT Sep 57 puts @61.4
This move rebalances me to neutral on the Retail ETF. I was already short Sep 52 puts, Sep 54 puts, Sep 63 calls, and Aug 50 puts. I am surprised at the strength in the stock market. I am dancing closer to the flame with the narrowing of the short strangle (short 63 calls, short 57 puts and two more layers of short puts).

The bond market in the short term is confusing to me. I wrote about the possibility of parabolic move up in bonds on big news, followed by a crash. What does a trader or investor do with that? I am still processing, though my tendency is towards risk aversion.

Long AMGN BRKB ESRX EWG KFT
Net long LGF SPY
Net neutral IWM XRT

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