My plan:
Indices volatility has expanded into overnight. The three majors went down to retest yesterday's lows at 4 am as Swiss Bank announced stop buying Euro. They recovered thus before US open. ES is above yesterday's high while NQ is near the high. I will manage my risk mostly in indices ETFs if we hold 1980. Watch for the pattern of last couple days: morning up and afternoon down.
Grains moved up overnight. All three are above yesterday's high and in their CHVA. I plan to move Mar corn 400 calls up in b/e for safety. Be aggressively locking in profit in wheat and corn. I need to reverse some wheat bull calls to release price pressure.
My execution:
Indices futures played out to the down side. ES lost another 1%, 20 points and closed to the low of the day. I placed several naked IWM, SPY and RUT credit spreads but none got filled. I had one ES 1780 Feb wk1 filled at 525 in IB before closing. I compared ROM % of SPY, SPX and ES, SPX and ES come out better when there is enough margin to trade and hold for longer time. ES dropped another 12 points after hr. I will wait to see what overnight will play out. Tomorrow may be wild as the Friday of January expiration.
Grains sold off most of the day but pulled back somewhat at closing. I didn't corn and wheat profit locking and risk reversal. I learned a hard lesson about locking in profit and risk reversal. I have been some what greedy when there were less than $100 premiums ($2.00 price) left I still roll them up or out. The better way would be just close the positions and look for another opportunity to cover the closing cost. My positions in wheat March, May 530 puts are good examples. I rolled them over within $2.00 prices at the time. I had to pay 3-4X to reverse them when the trend changed. These practices pretty much wiped out my early profits.
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