I was short the puts--had mentioned the play previously, but let me clarify it: I had sold to open SEBL May 100s, in 2 separate batches, before the NAZ correction. I believe SEBL was around 125 or so at the time. Today I bought to close at 13/16.
I closed them out for 2 reasons: first, I don't like the amount of margin capacity, that's true. If for instance we get another downturn, I might want to use that margin capacity to sell some more puts (tho somewhat unlikely at this point, I didn't like getting singed last month), or maybe I'd use it to short-term trade calls.
And specifically, tho SEBL is replacing CBS in S&P 500, requiring index funds to buy, the date of the switch hasn't been set. So I'm not sure how much more it will go up near future--and it could even trade back down depending on the Fed and market. I felt therefore that today was a good day to close the position. |
