Tuesday, February 17, 2009

February Trading Update

First, revisit my most recent trading update - Amassing Soon-To-Be-Worthless Dollars.

Despite my double long oil ETF - DXO - and my double-short long term Treasury ETF - TBT - getting creamed today, I still managed a nice paper gain on my positions.

Since my last update, all I had done was add to my S&P 500 short. I just about doubled up my position in SDS at 80.33 last Thursday, after the close. It sank even further but bounced today. I let out this additional buy at 83.36 in today's pre-market. You can see above where it closed. I still have my core position that I bought at 66.00.

I also dumped the SRS I bought in my retirement account. That I initiated at 54.85 and exited at 77.86.

As for the chunk of SRS in my regular brokerage account, I sold 20% of the position at 77.40. I've been buying that thing from 128 on down to 57. My break-even cost basis on this trade/disinvestment is probably pretty close to here, 78-80.00 per share.

Today I dumped my Goldman Sachs Feb 95 puts. I was in 4.35 (8 days prior) and out today at an average price of 7.60. Still down a bunch there on my short stock position - average price 72.00 or so.

I recidivated today with CDE - a stock in which I've lost a boatload of money in the past few years. I bought the silver miner at .75. I fully expect to lose 3/4ths of this *investment*. I just couldn't help myself. Silver is running and this ticker has substantial short interest - 13.9%.

I also shorted the Homebuilders ETF - XHB. My broker wouldn't let me short it so I bought Feb 11 puts for 14 cents over parity. They will expire in 3 days. We'll see if my broker lets me stay short the ticker after expiry.

Man, I sure wish I had some SKF today....

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