Thursday, January 3, 2008

Added some AMZN Puts

I added some short term AMZN Jan95 puts this morning to try to hedge my AAPL calls with a pairs style trade. I am getting slightly conservative with my options positions going into tomorrow's jobs report. I think that AMZN is overvalued and I think AAPL is undervalued, but they seem to move in a similar direction when the market is reacting to general trading conditions like economic data. This is a short term hedge and I will cover one side or the other tomorrow morning.

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