The Dean’s Trades
The Dean’s Trades: DSL & LEH Puts
September 11th, 2008 Posted by The Dean No Comments »I sold half of my DSL puts today and sold almost all of my LEH puts. This is still a good entry point for an SKF call spread. We are in a big rally off of this morning’s lows, which I think is actually bearish. That these little rallies start so quickly (there has been one every day this week, either at the open or at the close) indicates to me that there is still too much bullishness.
The Dean’s Trades: SKF calls & LEH puts
September 9th, 2008 Posted by The Dean No Comments »I bought some April 09 SKF calls earlier today around $20 per contract. SKF is the symbol for UltraShort Financials Proshares, which moves inversely with financial stocks. I bought the Apr 09 +130/-180 calls because they were pricing in an 85% chance that the bear market in financial names was over. Absurd, in my opinion.
Also I have a limit order to sell my LEH puts if it drops again tomorrow AM. That’s great because I think all stocks but especially financials are going to fall much further. The so-called July 15 “bottom” was caused by aggressive government invervention. A sustained bottom to a real estate crash – which is what we are experiencing – will never be produced by government intervention. It will happen naturally but not for a long time.
