We are now in process of rolling out our hedges and will be selling more ATM, and even ITM Calls on some of our LT Longs.
Lots of bad news today… We are now looking at Shorting the market, and some of the strongest and biggest gainers over the past 6-12 months. We’re talking the AG stocks here…
No matter their business, these are still basically commodity companies, and commodities with 30-50 forward PE’s must come back to earth eventually. Historically these stocks trade at around 5-15 PE’s.
Once these start to weaken if the market continues down, and there is certainly no sign that it won’t, these will begin falling fast and hard.
Expiration should be very interesting indeed. We still love RMBS, and V and MA on a healthy pullback.
