10
Aug
11

Finally markets will rebound today..

Finally, there was some green across asian markets today after several days of hammering. It goes without saying that markets were oversold on technical charts and bounce was round the corner. Fed yesterday said that it will keep its benchmark rates at near zero levels for extended period of time.

Till yesterday, I was on wait and watch approach. But yesterday on expectation that markets might rebound today, I sold a lot of OTM puts. I bought 4700 put and sold 4600, 4500, 4300 and 4200 puts. For every one 4700 put bought, I sold five 4200 put. With bounce around the corner and IV’s at historical high it made sense to sell puts. I also bought 5400 call. I will square off sold puts today. It’s prudent to take profits in these volatile markets.

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1 Response to “Finally markets will rebound today..”



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