Joining the Dark Side

In my personal taxable account I am 80% in cash and 20% in SPY puts. I hold no bullish positions whatsoever in this account. Quite unusual for an Option Premium Collector, huh?

In other accounts we have moved to cash as much as possible but still hold quite a few long positions including some naked puts. We have increased our protective put holdings and have short call positions fairly snug up against the stock prices. We have been rolling down calls as prices drop. For example, we've rolled down GE three times this month and there are still 17 days left until options expiration.

The truth of the matter is that I feel great about my taxable account. I have limited risk and I'm not fighting the tape. If their is a bear rally I'll be stopped out and our long positions in other accounts will benefit. If not, I'm Darth Vader and have a chance to swing for the fences instead of the singles an option premium collector makes his/her steady fare.

If nothing else I hope everyone bought protective puts like I've been harping on for weeks. And by the way, it feels better than I thought it would here on the dark side.. [fortunately I bought some APOL puts this morning because these SPY puts are getting whooped....for today anyway.]