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.

[caption id="attachment_1686" align="aligncenter" width="500" caption="Proctor & Gamble"][Proctor & Gamble][][/caption]

[caption id="attachment_1687" align="aligncenter" width="500" caption="Proctor & Gamble"][Proctor & Gamble][][/caption]

[Proctor & Gamble]: http://traderpau.files.wordpress.com/2009/08/2009-08-12-pg.png [Proctor & Gamble]: http://traderpau.files.wordpress.com/2009/08/2009-08-12-pg_prop.png