Monday, August 30, 2010

Leg out of SPY Backratio

I leg out of the short SPY backratio. I cover two of the three legs:
cover short half the SPY 88 puts
sell SPY 96 puts
still short half the the SPY 88 puts
Netting a small but useful profit, though I had lot more profit at Friday's lows.

The ThinkorSwim software is extremely sluggish for me today, so I use the website to execute the trades. I don't know if the sluggishness is due to the new release, more TD Ameritrade customers using the server, or what, but I had a frustrating morning trying to enter these trades.

The analogies about surfing come to mind, about the staying on a beach with a lifeguard but not depending on the lifeguard. Sometimes there are problems related to computers or software or phones, that can have a negative impact on trading. These kind of glitches happen, often during the worst possible days.

Long BRKB, GLD, SPY, TLT

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