Dan/anyone,
fwiw, today I tried covered put write strategy? on ES. Today was one of those days, I was confident that the market will fade in the afternoon, because of weak labor report, despite Paul O'neill resignation. So I went short on ES at 908 and since the market didn't climb down, instead of getting whipped again, I wrote DEC870 puts (in the ratio 1ES : 2puts). If ES takes off , I will roll over the puts to strike price 10/20 points less than the ES price, depending on the run. This way,
1) I can minimize my losses atleast, forget profits at least now.
2) As there are only two weeks left for the expiry, my hope is the puts will expire worthless, if nothing else works.
The way it closed, I won't be surprised to see it take off on Monday. This is first time I didn't put a stop loss and I believe in Murphy's law :(
Any comments on this guys?? Thanks... |
