Readings: -$26T, From long to short puts, Wednesday wonder
- Blog Maverick: I’m Going Long Right Now
I put 8 pct of my net worth in DIAmond puts at 11000, as a hedge, and just sold them at a very nice gain. Very nice. Now I’m short puts that I sold in not near as big a position, but nice. I’m going long.
My first stomping grounds are MLPs. They have been getting killed. KILLED. They build pipelines, ships, whatever, and they do contracts to provide service via those assets. The assets are very long term, and the cash flows are very consistent. I am putting together a big porfolio that will pay me more than 10pct yield.
Why sell puts ? With market volatility (VIX) at an all time high, I wanted to take in some of the volatility premium in this bullish move.
This is Mark Cuban. 8% of NW is a big number in this case. 
There were two rumours doing rounds explaining Wednesday’s bungee-jump by the stock markets. One was that there was a firesale by three India-focussed hedge funds.The second was that one of India’s big bulls, who has been sitting on big shorts for some months now, has been asked by New Delhi to cover positions and not to try and bring the market down. That there was significant short-covering is true because Nifty Futures volume hit an all-time high of 5.69 crore shares on Wednesday.
Rumours - the lifeblood of Indian stock markets?
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