Bookkeeping: Covered Index Short Positions

Sometimes things just work out perfectly - the past 24 hours has been that case. Almost to the dime our short exposure of the S&P 500 index via SPY puts and a levered ETF (shorted TNA) paid off as expected - from S&P 1040 to 1020.

This morning I covered all instruments (sold puts, covered TNA short) into the early morning selloff as my target of the "gap being filled" happened.

I've cut and pasted the options returns below - 70% on just over 6% of the portfolio in 1 day.

[click to enlarge]
If you followed me into this trade please consider donating to the website - one trade like this makes a quarter. ;)

I also cut a good bit of the Bunge (BG) short we put on yesterday as it was up a quick 5% in a day.

From here I will mount a new round of shorting on any break below the 50 day moving average (S&P 1017 and rising by the day) - but I'd expect a "reflex" bounce of some sort first. If this bounce is nothing more than cursory (dead cat) will be interesting.

Frankly the economic data we have seen the past few days is not at all different the type we've been ignoring for months on end; only now it suddenly "matters".

Short Bunge in fund; no personal position