Wednesday, March 3, 2010

Bought a little protection yesterday before the close

So I bought a little protection in the form of SPY puts yesterday for two reasons. One is I am all long on all of my positions so I want a little downside protections, but also because Volatility is becoming very low again so the options are cheap.

I bought 3 Mar '10 2010 $107 put options for 0.63 a piece. I did this purchase from my phone and I thought I was buying the regular put, but I guess I bought the Quarterly option. The only difference between the regular put and the quarterly is that the quarterly option expires on the last day of the month and therefore is a little more expensive, but not by much. I actually like the fact that I picked up an extra 12 days of time.

To read more on the Quarterly options click here

1 comment:

  1. By the way I would much rather see this position expire worthless and the market continue higher as from an overall portfolio view this would bode better for me. I just want the small insurance to help cushion the losses just in case.