Short Option Plays Reviewed

by billb 11. October 2008 13:13

My short puts on GE and XLF are still in play.  The GE puts were in the money on Thursday and for most of the day on Friday.  Then GE surged up 13% putting it around $21.  I'm really mixed here.  I wouldn't mind owning GE at less than $20, but I also like having the capital freed up as there are plenty of bargains on my shopping list.  The second option isn't so lucky.  My XLF $16 puts are in the money.  It was looking very bleak on Friday, but then the XLF surged 10% to close at $15.10.  It really all comes down to when the recovery is going to happen.  I've got my money on a large move to the upside that will happen at some point in the near future.  Whether it's next week or not, I have no idea.

I think it's safe to say that my short call on C is going to expire worthless.  I'm slowly dropping my cost basis on that stinker and still like it as a long term hold.  I'd like to write calls at no less than 22.50 and preferably higher.  We'll see what the market offers me next week. 

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