Out of My Bearish Calendar Hedge

by billb 10. June 2009 13:50

I only have a week and two days left until expiration.  At the risk of being assigned, I closed my calendar spread.  I've been waiting on a 1+% down day to hopefully spike volatility a bit and give me a few nickels back.  Today was the day.

I opened the spread for .70 debit and closed for .50 for a net loss of $20 per spread.  I may open another bearish spread on the JUL/AUG calls within the next few days.  To be quite honest, I'm impressed with the market's resilience.  I honestly expected to be defending my calendar spread, but to the downside.  My sweet spot was 840-860 on the SPX, and seeing sub 840 wasn't completely out of the question in my eyes.  Shows you what I know.  The punishment for being wrong wasn't much though.  The reward for being right could've been much better.

My next stop for jumping in front of the freight train that is the market is likely 950ish.  There have been gap ups in the morning that come close to this level.  If I can catch one some morning, I may hop on and see where it takes me.

What'll be extra funny is if the SPX is hovering between 840-860 by next Friday. I can only laugh because it's happened to me more than once. :)

Tags:

Options

Add comment


(Will show your Gravatar icon)

  Country flag


  • Comment
  • Preview
Loading



Powered by BlogEngine.NET 1.5.0.7
Theme by Mads Kristensen