Limited Downside

The market is concerned today about European sovereign defaults. I would point out that European markets did not fair all that badly today with the DAX and FTSE only down .6%. If contagion were to occur I believe they would be the first to sniff it out. Additionally, the market has not become maximum overbought. As such I believe any further downside will be limited. I sold some SPY 108 Puts expiring next Friday naked.

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