As discussed in yesterday's post CCI is taking profits on portfolio insurance positions.
Today CCI rolled the option position in the S&P 500 (SPY) from May to June. Specifically;
- closed the May $136-$130 put spread. Paid $1.1/contract. Sold for $2.65/contract!
- used the gains of this trade to re-purchase insurance via the June $133- $128 put spread for $1.61/contract.
If the market continues its current downward path, this might be the last time CCI buys insurance in the option market for awhile.