Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Current Bias and Update

I am sitting on quite a bit a cash right now, to the tune of 75% of my account, and that is where I'm staying for the moment.  My current positions are as follows:

1)  The BIDU collar, which is getting some return ahead of the falling value of the put.

2)  THE VXX covered call, which is down and I have sold the November $14 calls at this point.  I'm holding firm because the VXX will inevitably rise at some point and at least make this trade break even.

3)  The MDT collar, with emphasis on the dividend and protection.

4)  The VMW collar with an April $75 put for protection.  

5)  I'm holding two at-the-money covered calls for WDC and MU, that I did not have time to post.

 

Notice that everything is hedged in with a collar or at least a covered call.  I'm not comfortable hanging out there with most of my portfolio in my monthly covered call strategy going through earnings and the elections.  I'm spending my time reading and reflecting at the moment and staying in cash.   I've finished reading much of Jeff Augen's work on volatility (see my bookstore if interested) and I'm moving on to more reading about volatility, the Greeks and problems with technical charting.  I anticipate making some changes in my IRA account over the next month, but I'm not in a rush because I don't like the looks of the market right now.  Look at what happened toWarren Buffett in China.  There is plenty of risk out there if Warren Buffett has trouble evaluating a company.