Tuesday, June 8, 2010

Bookkeeping: Selling All SPY 107 Puts and 2/3rds of SPY 106 Puts

I am selling the last 10% of the SPY 107 puts I bought last Friday for some 50% profit, but only a 0.6% allocation was left on the table.

I am selling 66% of the SPY 106 puts I bought yesterday on the break below 1060 for a very good profit (30%ish) in less than 24 hours.  I used 6% allocation originally so this will leave me with 2% after the sale.

Game plan from here is simple... we're sitting around S&P 1044 and +/- a few points this is key support. On any bounce over S&P 1050 I'll dump the other 1/3rd of the puts for a nice profit, albeit less than the batch I just let go.  If S&P 1040 is broken I will have to think about what to do... that could be an area where people throw in the towel and give up or it could be a new leg down.  I assume the action will be very quick if 1040 breaks as computers rush in.

EDIT: Sold remaining 1/3rd of SPY Puts and going to sidelines for now to watch.   If 1050 can hold, might be an oversold bounce opportunity and my FFIV/TIBX sales will once again mark a short term turning point.


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