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SharePlanner (< 20)




July 07, 2010 – Comments (2)

From time to time, I have to post this video, because it so eloquently (and yes somewhat graphically) captures what all of us bears must do on days where the market runs totally hog-wild, as it did today. If you are a regular, then you know that I am actively hedging my portfolio against this run up, and despite being neutral in my portfolio, I was actually up about .4% on the day - I can't complain that's for sure. I will continue to hedge my portfolio with a large position in the Nasdaq QQQQ as I've held it once again over night just as I have done since last Friday. I have no idea how high or how long this rally will go for, but for now I will patiently wait on the sidelines until the conditions are right again for shorting.

Here's the rest of the Market Wrap-Up.

2 Comments – Post Your Own

#1) On July 07, 2010 at 11:08 PM, 1315623493 wrote:

I am also hedged using several stock option positions on several securities such as DIA, GSG, VIX, BND, and UUP. DIA is an etf tracking the Dow Jones Industrial Average. My position here is...

1 DIA January 2011 $90 call option: delta = .72

2 DIA January 2011 $90 put option: delta = -.28

Net delta is +0.16 which makes the position slightly biased to the upside but the put options are much more sensitive to the movements of DIA which is what I want since I expect DIA to decline another 14%. But the call option is there just in case I am wrong. 

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#2) On July 08, 2010 at 8:10 AM, SharePlanner (< 20) wrote:

Good job - never hurts to hedge your positions in the midst of uncertainty.

I think you are probably right on the sell-off that still remains. I'll probably in the next few days start adding new short positions to the portfolio. 

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