Update on the interest rate trade
The TBT/TLT option trade worked out in my favor. Now I'm using the same technique with the S&P 500 - I'm short one September ProShares S&P 500 Double Short put at 39. Again, I collected about $35 in premium - but this time I used it to buy a Sept 67 call for $20. That is a mere $9 after commissions, but it puts me in position to make a profit if the market tanks before the 3rd Friday in September. If it goes up modestly or stays neutral, I keep the nine bucks. Not a bad deal. I'll let you know how it turns out.