As I close the night I begrudgingly check the futures for a sense of what is to come tomorrow. I have followed some of the events over the weekend, and today regarding Libya, and others so it wasn't a terrible surprise. But, when I did check tonight I am regretful I did not buy protective puts, or at least keep a few protective puts on a few of my positions. (see more regarding put options at 888options.com).
I am at least thankful I have several call contracts on the USO and GLD...and thankful even more I closed my Feb11 short GLD call vs. rolling it up and out to the Feb weekly option expiring this Friday or the one in March. It is also nice to think about the fact I do still have a put contract on the S&P out in September $130 strike price. What this means is while I will likely not be happy tomorrow, I won't be as upset because I won't be down as much if I had not acquired GLD, USO and SPY option contracts several days ago. If you aren't yet familiar with option trading, or option protection I would suggest you become familiar if you do any investing in personal funds. This way you can at least trade with reduced risk by buying or selling option contracts as you best see fit.
Well that is it for tonight as I have to be up early tomorrow morning :). Enjoy your Tuesday and unless you're protected or brave just ignore the next few days in the markets. Then when it calms down do your buying. And, in case you're wondering the primary exit for both my USO and GLD options are 100%+ return since I bought them mostly as portfolio protection. Secondary exits will be to sell for no less than a 25% loss & sell short calls as necessary in diagonal formats.
Bryan
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