london brian....put repair...
i personally would go out to january, and get the lowest strike that matches your current higher strike premium...
object is to reduce assignable liability and gain time until the market reverses...
i went from 30 to 70 to 100% cash prior to the down turn, taking profits in my long portfolio, and selling jan puts around the strikes that i sold the common...many are upside down, but the worst case scenario is i get my portfolio back at a reduced cost, earn interest on cash, and no margin worries, and if the stocks go up, and i miss the upside of the common, i make about 40% for the balance of the year, or reposition by closing and reopening positions....even though the put premiums go against you, they are not 1 to 1 with the common....an unusual, but effective hedge... |
