Baby Steps

As I have written, I would buy into a sell off that lasted through expiration. As such I sold the SPY 107 Puts naked expiring this Friday.

3 comments:

Chaos! said...

Not much premium in those puts. Is it worth the "event risk"?

Tsachy Mishal said...

Good point, but they work in my portfolio. I am short the September 108 calls as a hedge against my longs. Its hard to think of a case where I would lose more on the short Puts than I would make on the short Calls. Worst case my hedge would not work. Also, they were 30 cents when I sold them.

Tsachy Mishal said...

Also, I would buy at that price in almost any case.