It’s an ugly day for the markets but the biggest decliners on our sheets are, at least for now today, our two biggest shorts. Our bet against the biggest loser in the mortgage/robosigning/foreclosure-gate debacle, Lender Processing Services, is hitting yet new 52-week lows again, giving us some more outsized gains in the puts we’ve been buying there since we launched and this stock was in the mid-$30s, not the $23 handle it’s now got. I think it’s headed much lower in coming quarters, but I might look to sell some of our hugely profitable puts in this one on future weakness to lock in some profits.
And silver is down about 4% on the day and is looking like it wants to crack to lower lows. If it were to break below $34 again, the psychology of the bulls would likely go funky freak out.
Back with a list of all my positions and a weekly wrap up next. Sticking with the playbook and buy on weakness.