The US Government is pushing forward with a new stimulus package aimed at helping the average American. Instead of a mere $600 with income restrictions, this new package is $2000 for every man, woman, and child in the US. Don’t go out and buy your new iPod yet. In fact, you won’t even be able to pay off your credit card bill or make a housing payment. Instead, there are some stipulations:
- You must buy mortgage debt
- The government chooses the debt product you buy
- The government keeps all proceeds
I have a lot of faith that this new stimulus package will help the average American in ways that they never imagined (unless Clive Barker and Stephen King count as average Americans).
I’m going to buy some longer term puts all the way up. I did buy some calls today, as it seemed an obvious trade for the day. My SPY investments that have done terrible (until yesterday) are part of my long term portfolio — my mad put buying spree started as a hedge. I’ll probably use that to write some covered calls (I’m thinking January options), but I’m going to wait to see how Monday goes for that.
