Unhedged and Nothing to Do

I covered all of my hedges this morning and then ventured off for some tennis and brunch with Mrs. Fly. I am now afflicted with a bout of allergies and hiding inside the darkest corner of my house. Markets are range bound and boring, which is surprising since this morning DB was going bust and the market was anticipating another fun day of bank runs, notably SCHW and DB.

But that didn’t pan out, at least not yet, and now we have runners in the smallest capped stocks — nothing really work exploring. At the same time, since markets aren’t cascading lower in what is bad news — I am hesitant to step in here and apply hedges to what some might describe a “boring tape.”

Nevertheless, I remain obstinately vigilant in my pursuit to sell short stocks and look forward to another occasion to do so.

Presently -25bps with a 100% long book, unhedged.