The market broadly reversed yesterday's price action, and my rebalanced portfolio behaved beautifully.  The only thing I'm missing is some downside beta and asset crash protection.  To that end, one new position:

• $1,000 Long Mar 2011 S&P 500 Puts, 950 Strike (marked at the CBOE bid/ask midpoint -- 14.35)

With today's rally and associated decline in volatility, it's a great day to be buying long-dated puts, so I'm going to take advantage of it.  All other positions remain the same and I'm left with a $4,205.48 cash reserve, which should be enough to cover any short-term moves against my positions.

Bring it Bernanke!  Let's see whatcha got, punk!

Posted by: Hermit Dave at 12:25 PM | No Comments | Add Comment
Post contains 113 words, total size 1 kb.