Buy IWM (sell puts)

Buy IWM via selling Feb 78 puts @86.6

I continue to edge into the stock market by selling 90% probability puts on the Russell 2000 ETF. There is a 90% chance that the puts will expire worthless if held until expiration. It seems difficult to imagine a scenario where the stock market gives up all its gains from the November 2012 lows. It could happen, but historically, less than a 10% chance.

This trade feels uncomfortable. Some recent trades moved against me quickly, so it feels like I have a cold hand. I remind myself that I came into the year, way under exposed to the stock market, so even if on the 10% that some of these puts come into play, getting assigned stock on a sharp pullback wouldn't be the worst thing.

Long APC BA GPS IWM LGF UNP XRT