Friday, March 16, 2012

Keep "putting" on the insurance

Our hedges keep losing....and we are "happy" about it..because overall the market continues to rise.

Continuing with our practice of having a market hedge in place CCI rolled the March $135 - $129 put spread out and up to the April $137-$130 put spread late Wednesday.  Net cost after commissions of $1.10/contract. That is the max loss. Break even at $135.90.  Max gain of $5.90/contract.   

"Hopefully" we will lose that again as the market continues higher.  Seems like  there "has" to be a pull back at some point and this relatively cheap, leveraged play provides some insurance against such an event. 


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