Forgot to post this last night (before IBB went up today), but I'm exiting my Jan 2016 puts, selling them for 35.8 (mid-point between bid and ask as displayed by Yahoo). I'll book a gain of 22% on the 10% position, or a 2.2% gain in 3 weeks, for an annualized gain of 38%.
After some further reading, I think that a lot of the large-cap companies in IBB are more fairly valued than the small cap ones, so puts on the entire IBB may not be a smart hedge; I'm considering purchasing puts for my GALT position just to protect it a bit, as it has run up a TON with no material change in its prospects.
JVS
This is not a trade recommendation.
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