BOUGHT +4 DELL 100 DEC 08 13 PUT @1.80

DELL

Covered my short put on DELL shorted at $1.29 yesterday now bought back for $1.80. A loss of 51 cents. That works out to about $200 for my position. Things didn’t look good for DELL after it broke $13. I covered today at the open when we gapped up a bit. The open gap up volume was low compared to its previous similar priced $12 level. DELL has been my weakest position so far. I might unload the rest of my shares at a loss on the next rally.

Three main reasons for my cover, 1) uncomfortable with the position due to price-volume weakness recently, 2) risk management in preparation for a possible test of 870 and below on the S&P, and 3) loading my ammo by selling the underperformers and adding to my stronger positions on weakness if we fall from here.

Related posts:

1. SOLD -4 DELL 100 DEC 08 13 PUT @1.29
2. BOUGHT +90 DELL @16.49
3. BOUGHT +4 ESLR 100 DEC 08 5 PUT @1.40
4. BOUGHT +1 SAP 100 NOV 08 37.5 PUT @4.20
5. Unloaded some more longs on this +50 points S&P500 day