Friday, September 13, 2013

Sell GLD (cover puts)

I cover short Oct 122 GLD puts @126.5
The decline is causing too much pain for me to tolerate. This move is part of unwinding a short strangle in gold. I am still net long, and some of the other short puts are also underwater. This leg of the complicated position is closed at about 60% loss basis the price of the option. Fortunately, the dollar amount is relatively small.

Long BRKB EMN GE GDX IWM KORS LGF
Net long APC BA GLD SPY XRT

/edit to add: looks like I covered close to the worst possible time of day. So it goes. The choice of holding, has the possibility of go down with the ship.

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