Option, I only play the long side, when things get "dangerous" i rapidly move to cash, I got into heavy cash. For instance in a reply to someone criticizing my low cash position on 2/8, #reply-17034081, I preannounce on Feb 8 the target to go heavy on cash at 1860/80. Of course I was very heavy in cash on 2/8 #reply-17033439, #reply-17034760. Then, as per plan, on 2/13 I started to go back to a heavy cash position again, #reply-17054988, and if you read today's musing, you can see that after a good 130 or so Naz points drop from that change, I once more moved to relatively low cash (30%) by the close. If I would short on those expected peaks, and be wrong, I would do much worse than being in cash and be wrong on the peaks. I am not trying to maximize profits at all, capital preservation is my first priority.
Zeev |
