BOUGHT +1 SAP 100 NOV 08 37.5 PUT @4.20

[caption id="attachment_783" align="aligncenter" width="500" caption="SAP"][SAP][][/caption]

The market is hanging by a thread at the moment. S&P is trading just above 850, a major support. I don't know if we're going to break down from here. The probability doesn't seem to favour either way significantly. With my deep long positions, I simply can't risk the possibility of another meltdown in market.

That's why I have ditched my SAP short put to minimize my risk and to sleep better for the rest of the option expiration week. I decided to dump SAP because it looks like it has the most downside of all my options holdings. I don't want to unload my equity share holdings now because I can wait on those, otherwise I would have dumped ESLR or DELL. SAP share price is just sitting on a major support level, and a head and shoulder neckline too. If it breaks from here, it could trigger a lot of stops and drop down too fast for me to cover.

I shorted the SAP Nov 37.5 put for \$3.40 and just covered them for \$4.20 (accepted the ask price). That is a major loss of \$80 + \$15 commission.