Adding to my Inventory

Today I am adding some hedges to my short positions:

1) Short 5 Dec HO 2.33 puts @ 920 pts
2) Short 5 Dec RB 2.20 Calls @ 300 pts

* 1 and 2 were done as a package. In a perfect world I would get assigned on both legs locking in a 730 diff, with the current diff at 1850. But I do not think this is the most likely case. It is most likely that one or the other will get assigned or they both expire worthless (which would be awesome as well, but diff would have to come in about 500 pts).

It really has to do with the current diff and where they usually finish historically. For example with the current 1850 diff this is right in line with historicals, so if I were to get assigned on the 2.20 RB calls that would give HO a minimum price of 2.3850, thus no assignment on the HO short puts. So on something like this if I get assigned on the 2.20 RB calls then my breakeven is at around 2.32 or if I get assigned on the 2.33 HO puts then my breakeven is around 2.20.

In addition to the above position I did add 1 short CL Dec put at the 80 strike for $1. If we get a sizable dip tomorrow before the fed announcment I will look to add maybe 2 more short puts in crude and maybe even sell a few RBOB puts somewhere in the middle of my 2.04/1.90 put spread that I own. Just looking to hedge my bets a little.

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