Defensive action on APC BA LEN TSLA SPY

Sell APC via selling Apr 90 calls @83.5
Sell BA via selling May 92.5 calls @84.9
Sell LEN via selling May 43 calls @38.5

Sell TSLA via selling May 50 calls @40.8

Sell SPY backratios May 148/145 puts @155.7

buy May 148 puts, sell 2x May 145 puts

I got a bit too aggressive with my longs and am paying for it today. I take defensive action in Lennar Homes, Tesla Motors and the S&P 500 ETF. The backratio is delta positive (a bullish bet) with a large profit if SPY closes around 145 at May expiration. A decline below 142 causes losses. 

I stepped in the doo-doo with LEN and TSLA, and doing damage control by selling calls rather than closing the positions. The risk is a whipsaw because a steep rally can cause big losses on the short call portion of the short strangle.

This squall may be a passing shower, or it may be the start of something bigger. I move closer to delta neutral, but still have a bullish bias. Sharp, short corrections are what is to be expected during bull moves. However, calendar 2013 has been so placid, the uptrend so gentle, that it feels like a shock to have a sharp down day.

 

Long BA BRKB IWM LGF PG WFC

Net long APC LEN KORS SPY TSLA