I’m going to hedge the portfolio a little bit more by buying some puts on the SPY and the QQQ. We’ve had a heckuva rally from the February lows and I am just going to buy a few puts to provide a little more downside protection in case the markets do get ugly again.
I’m bidding for some SPY puts that expire in May with strike prices ranging from $190-$192 or so. I would probably consider buying some more puts here and there selectively in coming days if the markets rally further from here.
And remember, that if you were scared/in pain/panicking back at the lows in February when the $DJIA was at 15,550 or so…well now, while we’re up huge from those lows, is a great time to sell/trim and catch your breath. You don’t have to be all in or all out and you don’t have to nail the top. Just make sure you’re in a position that won’t be painful if the markets do reverse and turn lower and get panicky in their sell-off action once again.
Here’s a very interesting conversation I just had on Scutify this morning about the Virtual Reality Revolution.