Mar 17 2008
Down, but not out
I’ve been tempted to sell new calls today, but haven’t. My paper losses are certainly ugly today and luckily a lot of it is coming from a spike in the VIX. Obviously I’m down on my underlying stocks and my long stocks, but I’m not seeing much long term pain from today. I’m flipping back and forth from down $2300 to down $1500 to down $3300. I am down any way it turns, but I have a good stance going.
Some of my positions like CAT expire on Friday. I’m long 100 shares of CAT and have a covered call deep ITM and another naked put at the same strike. I’ll get to take both of those premiums to the bank after my shares are called away. That type is the obvious hand off between share value and option value, but then I have postions like with FNM where it’s down [...]
Original post by Alex Fotopoulos