- Portfolio up 29.0%
- S&P Price Return, up 6.42%
- S&P Total Return, up 7.05%
So, the stock market was finally deemed overbought this week. It was overbought each of the last 8 weeks though so trying to buy downside protection would have been a waste of money then. I've been listening to Hedgeye's morning call quite a bit. They think this will be a year the 'April Flowers, May Showers' saying holds true with a correction coming in May. Keith has called for a correction down to 1140 and a resumption of the rally, which would be healthy in my mind. I put on a hedge late Friday in anticipation of this, buying an AAPL 250 put for $3.00. I will look into either shorting SPY into strength or buying a SPY May put at a strike of around 115.
Friday morning I also sold a Dendreon (DNDN) put for $9.50 at a strike of 55. I don't mind allocating a small portion of my portfolio to this risky biotech play. Provenge was finally approved by the FDA, and this purchase is based on the chance that the immunotherapy will work for other cancers besides late-stage prostate cancer. The market cap of close to $7 billion is a little overblown for just Provenge, but if a steady pipeline of treatments develop for a variety of cancers then $7 billion is a deal.
I also closed out my long AUD/USD position, selling the Aussie dollar at $.9285, a nice little profit from the $.9176 I bought it at a few days ago.
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