Futures had a small gap down on Sunday night. European opened with sell off which dragged US futures further down. US market opened with orderly selling and couldn't pull itself up at all. RUT is leading the flush as biotech and healthcare sectors continued falling. ES/SPX were down 3% in the early afternoon. They closed around 2.6% down. RUT performed the worst and closed below late August low. I sold couple far out puts earlier but realized the selling was severer. I then turned my focus to selling calls to reverse my margin to the call side. I think Tyler's concept of being heavy on calls has its merits. Market doesn't crash up. It's easier to adjust call side.
My leverage is up to 0.5 again and available margin is around $70K. I need to reduce my risk levels as volatility is creeping up again. Let's see if the August low retest will be successful. I have puts in SPX and RUT may be in danger if the retest failed. RUT doesn't look very promising.
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