Thursday, February 23, 2012

Buy IBM (sell vertical put spread)

Buy IBM via selling a vertical put spread IBM@197.7
Buy Apr 170 puts
Sell Apr 180 puts
for a small net credit

IBM breaking out from a small base. Support at 193 and then much more at 180. I am tempted to get more aggressive with higher strikes on the put spread, but the overextended general stock market is like a hanging sword ready to swoop and wash out over aggressive bulls.

Long APC BRKB GLD IBM
IWM MCD SPY XRT
* short GDX
* delta is near zero on this position

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