Trading Recommendations

By Marc Nemenoff
07 December 2009 @ 10:58 am EDT

Financials: Mar. Bonds are currently 6 higher at 119'00. We continue to hold the combination of short Mar. Bonds and short the Mar. Bond 115'00 put. We continue to have an open order to cover the Mar. Bond 115'00 put at 19 points (currently at 1'02). I feel the best case scenario for this position is that the Bonds break sharply and we eventually get assigned a futures position at 115'00 which will take us out of our short futures position at an effective price of 113'24 (we sold the 115'00 put at 1'08). Barring this kind of break we will be able to cover the 115'00 put at the recommended price and look for another a partial hedge for the short Bond position.

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