Selling our U put contracts to manage risk.

Shares of U broke above a short-term resistance level as investors seen open to adding back to speculative tech positions.

I still think U is overvalued and vulnerable to a sharp decline. However, in the interest of risk management, we’ll close out this position today and wait for more negative price action before buying more puts for this name.

While taking a loss is certainly not ideal, our U position has helped to balance our long exposure elsewhere (which has been doing quite well). And buying in-the-money puts has helped to minimize losses as these put contracts still have some time premium in them despite U’s recent break higher.