Thursday, May 23, 2013

Buy BRKB and SPY Backratio

Buy BRKB via selling Jul 100 puts @110.9
Buy Bershire Hathaway on this minor decline.
 
I layer another put backration on SPY @165.2
selling 2x Jul 148 puts
buying 1x Jul 151 puts
I like to do the backratio as net bullish. It has an explosive profit on a decline to 148 at expiration. Large losses occur on a decline below 145. No move or a move up lets me keep the tiny credit.

I have had the stock market on storm watch for some time now. Is this two day hiccup a passing shower, or the start of monsoon season, or something in between?

Long APC BA BRKB HOT IWM LGF NTAP PG SBUX
Net long SPY

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