As the prices of S&P500 rise and the largest components of the index continue to be overbought, I continue to add to my Put positions. We will look to the upward Bollinger bands of those largest components (AAPL, MSFT) in conjunction with technical demand levels in SPY to gauge when the Put should be closed.
In the meantime, I have added to the “3 Live Puts” to total “5 Live Puts” by adding the following position:
Long 2 Jan 21, 2020 290 Strike Puts @ .28
May add to this position tomorrow if the market does not correct before then. Likely a correction as the yield curve spread has not widened to a level that would threaten stocks yet (recession). However, will not be caught Long in this market at this level. See you tomorrow.