US indices futures went up over 1.5% overnight after the Labor Day long weekend. It's brought by China and Europe markets are up push. Last Friday's gap was closed. VIX is still at 25. I will focus on deleveraging my positions if the up move is holding well.
1. Roll some long puts to my naked short puts positions to make up credit spreads;
2. Roll naked short puts further out if there is 25% more profit;
3. Roll endangered puts out for a credit
4. Sell more calls to hedge my puts.
It was a strong rally. Indices didn't get any chances to fill last Friday's gap. ES/SPX and RUT closed on high of the day. SPX and RUT ended with 2.5% and 2.2% respectively. I was able to reduce my leverage to 0.78 and margin up to 50K. There are still some positions under water for Sept 3 and 4. Hopefully I will be able to manage them tomorrow. So far, the rally is still a retrace toward Fib 61.8 on weekly and daily. Until the market close above such levels firmly my risk is still at the downside. I will take advantages of the pull back to reduce my leverage and risk.
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