Well it’s gotten quite ugly out there the last week. Our SMH short and puts that I highlighted for you guys a couple times right as it was hitting $120 have really kicked in, as have our other shorts. Meanwhile, our longs are also getting slammed today. Here’s what I’m up to. I will be writing more detailed analysis of the markets and economy today, but I wanted to get this Trade Alert out now.
I’m nibbling on some, maybe 2-10% sized tranches:
Just a little bit of each, not drawing any lines in the sand.
I’m also covering some, maybe 20-80% of the following:
and a little bit some of other shorts.
On I’m also going to roll up some of our put options on those same above mentioned index ETFs. By that, I mean I am trimming some of the SMH puts that are trading at $10 and will be buying some SMH puts dated out into September with lower strike prices that cost around $1 or $2.
I also trimmed a little GLD, maybe 5-10% of it.
The upshot is that the markets are a bit panicky, and as I kept telling you guys, I’ve been waiting for some better pitches — they’re here now. So we follow the playbook. I’m also digging through the rubble looking for a new name or two, as the opportunities might warrant. Stay tuned, be cool, be opportunistic.