With the S&P 500 "hanging around" 1120 I am going to sell the last third of my May 114 SPY puts for about 30% gains, which is not bad work for a 24 hour holding period (in market hours). While not a huge exposure (about 7.5% in total, 5% sold Friday) this SPY put position slapped on Friday once the market rolled over helped the fund to gains in both that session and today's.
With option expiration this Friday, I want to roll over into June contracts since the 'decay' in options accelerates sharply the closer we get. Hence if the S&P 500 breaks 1120 convincingly I will begin a new position in June puts.
The market seems somewhat oversold here, but then again there seems to be zero panic or even emotion to the selling.
Monday, May 17, 2010
Bookkeeping: Sold Last "Third" of SPY May 114 Puts
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