Downside Position

You're looking good just like a snake in the grass
One of these days you're gonna break your glass
--Electric Light Orchestra

Took on my first downside exposure in some time last Friday. Environment feels pregnant with potential catalysts, and the technicals feel like they're running out of upside gas.

Token exposure, really, consisting of small index SPX short and some XLF puts. Relative value of out-of-the-money XLF puts seemed superior to SPY at the moment. Fundamentally, financial leverage will work against the banks, I believe, if prices get moving to the downside. Technically, just to retrace the Trump rally means that the banks need to fall 20%--which seems quite within the realm of possibility.

I like them out of the money right here as an expression of a potential melt.

position in SPX, XLF