This section provides you with insight into my open investment positions.  This is not meant to provide you with advice on your portfolio, as it would need to be tailored to each individual's needs -- there is no one-size-fits-all approach to this.  However, this list will give you a sense of my stance on the markets, and whether I'm bullish or bearish on different areas of the economy and the markets.  Of course, you can check my blog for detailed discussion of any or all of these positions at various times, as well as my e-book for even greater depth on why I've taken the specified approach.

SPY SEP 100 Put Options

I purchased these the week of August 22, mainly to avoid making the same mistake I made with my previous options purchase (see below), which I sold far too early.  Recent market activity suggests we may have bottomed out in the first half of August, but I wonder if this is the final head-fake the market will make before plunging again later in the year.  I've already watched these SEP 100's value erode significantly in the last several days, so anything short of a catastrophe in the markets won't help me regain/make any money with these options.  Then again, the true purpose of them is to protect against that potential catastrophe and give me peace of mind, so in that sense the purchase was the right move.  I'll start looking at the October puts within a week or so.

SPY SEP 119 Put Options

Bought these options on July 25, as a hedge against the remote possibility that the debt ceiling issue will not be resolved by the August 2 deadline.  In essence, I wanted some protection in place in case the markets react severely to the debt ceiling issue not being resolved in time.  These deep out of the money puts (SPY was trading at 134 when I bought them) will capture that downside risk and allow me to profit if the market plunges.  In short, this is a classic example of a black swan protection protocol.

In general, these options reflect my extremely bearish stance on the US stock market and economy as a whole.  I've chosen to short the S&P500 due to the breadth of its underlying securities, as well as its concentration of numerous financial companies, which I believe will be one of the hardest hit sectors in the coming next wave of the economic crisis.