Monday, June 22, 2015

Covered up

This morning, pre-market, I bought 400 SVXY at 92.90.  I had seen SVXY go well over 93.00 earlier in the pre-market session, and I didn't want to get left behind, so I jumped on the chance.

The reason I bought these is that I am short 4 calls expiring July 2nd at the 93 strike.  If shares are called away from me, I want to be able to say "thanks for the [tiny] profit." (on the shares. I intend to make full profit on the contracts.)  Better than "too bad I'm taking a loss on freshly bought expensive shares."  I don't like to take losses.

Will I regret buying so much SVXY?  We'll see.  So far I have made so much in premium against 400 shares that I can't keep track.  Now I have another 400 from which to make premium.  We will see whether this turns out to be a take of woe or a tale of dough.

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