My portfolio beta-weighted delta approximate ‘0’ or neutral.
Looking at the week ahead – expects market to be driven by “Second Wave” mania.
EWZ
- Taking a bear call spread on EWZ
- Anticipates the virus remains ‘uncontrollable’
- Economy toll expected to be high : https://www.reuters.com/article/us-brazil-economy-pmi-idUSKBN2441N2
- Selling a 21Aug call at $34
XLE
- Taking a bear call spread on XLE
- Second Wave and re-shutdown / roll-back of reopening efforts will dampen the demand for oil, hence oil producers
- Selling a 14Aug call at $43
SPY
- To balance against too much negative beta-weighted delta, taking a bull put spread position on SPY
- Selling a 14Aug Put at $276
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