Bought +3 PG 100 AUG 09 52.5 CALL @.60, Mark 52.16

With just minutes til the FOMC announcement, I’ve entered a long in Proctor & Gamble (PG) to hedge my COF short play.

There’s going to be a lot of fake moves after the FOMC meeting for sure. So I’d rather hedge my short position than set a tight stop.

I chose PG because it seems to be the least short-term overbought from the Cara 100 list. And on a closer inspection, it seems alright. I am basically choosing a company with the least apparent downside risk of the best 100 global companies.

Entry: $52.16

Stop: $51.80

Target: $53.70

Reward / Risk = 1.54 / 0.36 = 4.3 < 5, but this is a small hedge position to minimize my risk, not to make profit.

Proctor & Gamble

Proctor & Gamble

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