A killing Monday is behind us for now which I am going to review it later or on my weekly review.
Last night China Central Bank cut its interest rate again alone with other rate related changes after Shanghai index closed down 7.6%. European market and US indices futures reacted with 4-3% surge. Before RTH, ES is parked on top of yesterday's high which is on the lower edge of CHVA. If we closed back in the CHVA of 1980 I think we would have a base to hold. We may see a retest of yesterday's low or even break below it then it's a dead cat bounce. My plan is to deleverage my account currently at 4.94. It was at 8 yesterday with VIX at highest level of near 50. I will roll down and out some positions near the money when and if possible. I may close some positions with little profit or loss to deleverage as well. Need to work on my Etrade and Fidelity accounts.
All of my corn and wheat positions were closed due to the margin call of Friday and Monday.
ES and RUT couldn't break yesterday's highs and finally gave up. The end of day reversal was pretty bad. Overnight lows were broken at the end. It was a largest reversal since 2008 according to data. I tried to roll over my put positions all day. Apparently it is difficult to roll spreads. I put on combo, extend spread, separate orders. None of them get filled. Volatility is still high despite the 3% run up overnight. VIX briefly went below 30 then closed above 40. Tomorrow may be another volatile day base on today's closing. I plan to do the following to reduce my margin and rollover my near money and ITM positions.
1. Buy out of money puts to increase my margin if I still have enough margin to buy them in IB.
2. Rollover credit spreads on this week's puts even at a loss;
3. Close positions to shore off margin calls.
The key is to survey and manage my risk to avoid a big disaster.
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