Some portfolio adjustments

Today I sold all the odd lot shares in my wife's IRA since I can't write covered calls on them. I allocated 5% of her portfolio to BGZ the 3X Large Cap Bear as a hedge. The rest of the proceeds are sitting in cash. In her account the only trades I'll make are deep in the money covered calls and way out of the money covered puts.

In a couple of client accounts I took some cash and bought some SDS the 2X Ultra Short S&P. I only bought a little right now because I'm looking to add if the market rallies or at least average into the position. Due to the recent market hemorrhaging all client covered calls are out of the money and look like they will expire worthless. I'll sell new calls close to the money next Monday.

It has provided me some comfort to liquidate some non-writable positions, raise some cash and purchase some hedging power. If there is not another big time drop in the markets I will be very surprised. I can't say when it will happen but I'll sleep better in the meantime by preparing for the worst.