Wednesday, October 20, 2010

Bookkeeping: Selling SPY Calls

This rally has exceeded my expectations - I was hoping for S&P 1180 "at some point" in the next few days to sell the SPY Calls I bought just hours ago.  Already the S&P 500 has surged past yesterday's intraday highs - again, surprising.  POMO Arigato Mr. Roboto.  With that I am going to take some quick gains; I sold half my SPY 118 calls (entry $2.07) for a 15% gain around $2.40 [sold when the S&P 500 reached yesterday's intraday highs]  and the second half will go right now around $2.60 (just under) for a 25% gain.  So an average of about 20%.  I used about 4% of the portfolio for this transaction. Sadly this is about the only thing I am nailing lately as my equity decisions have been 'stinky'.

We have recent highs at S&P 1185ish - from Monday and the previous Wednesday.  A move over that level would be the next natural place to buy a 'breakout'.

No position


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