BOUGHT +4 DELL 100 DEC 08 13 PUT @1.80

[caption id="attachment_621" align="aligncenter" width="500" caption="DELL"][DELL][][/caption]

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.

[DELL]: http://traderpau.files.wordpress.com/2008/11/2008-11-07-dell.png