Strict Standards: Non-static method HeadSpace2::get() should not be called statically in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 345

Strict Standards: Declaration of HSM_PageTitle::load() should be compatible with HSM_Module::load($meta = '') in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/page_title.php on line 0

Strict Standards: Declaration of HSM_Description::load() should be compatible with HSM_Module::load($meta = '') in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/description.php on line 0

Strict Standards: Declaration of HSM_Tags::load() should be compatible with HSM_Module::load($meta = '') in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/tags.php on line 0

Strict Standards: Declaration of HSM_JavaScript::load() should be compatible with HSM_Module::load($meta = '') in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/javascript.php on line 0

Strict Standards: Declaration of HSM_Stylesheet::load() should be compatible with HSM_Module::load($meta = '') in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/stylesheet.php on line 0

Strict Standards: Declaration of HSM_Stylesheet::init() should be compatible with HSM_Module::init($args) in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/stylesheet.php on line 0

Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HeadSpace2_Plugin::specialchars() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/tags.php on line 62

Strict Standards: call_user_func_array() expects parameter 1 to be a valid callback, non-static method GoogleSitemapGeneratorLoader::Enable() should not be called statically in /home/rickdahl/coveredcalls.rickdahl.com/wp-includes/plugin.php on line 311
My Covered Call Blog » Blog Archive <br /> <b>Deprecated</b>: Non-static method HeadSpace2::reload() should not be called statically, assuming $this from incompatible context in <b>/home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/page_title.php</b> on line <b>77</b><br /> <br /> <b>Deprecated</b>: Non-static method HeadSpace2::get() should not be called statically, assuming $this from incompatible context in <b>/home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php</b> on line <b>284</b><br /> <br /> <b>Deprecated</b>: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in <b>/home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php</b> on line <b>188</b><br /> <br /> <b>Deprecated</b>: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in <b>/home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php</b> on line <b>188</b><br /> <br /> <b>Deprecated</b>: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in <b>/home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php</b> on line <b>188</b><br /> » My Covered Call Blog
Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HS_InlineTags::replace() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/models/headspace.php on line 188

Deprecated: Non-static method HeadSpace2_Plugin::specialchars() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/tags.php on line 62

Deprecated: Non-static method HeadSpace2_Plugin::specialchars() should not be called statically, assuming $this from incompatible context in /home/rickdahl/coveredcalls.rickdahl.com/wp-content/plugins/headspace2/modules/page/description.php on line 52

Hedging


Written on January 14, 2009 – 12:56 pm | by admin

As you may know, I puchased a long dated SPY put (Sep $80) a week or two ago for $6.20.  I decided to do this because the biggest thing I learned from all the turmoil in the last year is that never be unprepared for a market catastrophe.  To me this means holding some long dated market OTM puts.  I will be looking to keep this as part of my portfolio for the forseeable future.

Since I bought my put, the SPY had gone almost 50-60 points before today.  During today’s drop and explosion in volatility, I sold my put for $10.20 (67% after commissions).  As it stands right now, I have sold at the low of the day.  I don’t expect this to be the ultimate bottom but after making 67% in a few days, I have to take it off the table.  If I had bought more than 1 contract, I would have sold half and left some of the play on.  I do believe that the market is going to bounce (not to 9000) before it re-tries the lows and so I may look to re-enter at that time.  

Hedging isn’t for everyone and most of the time I will just lose money but for the next time that Oct/Nov 08 happens, I will be prepared.

Tags:

You must be logged in to post a comment.