Today is the day for FOMC announcement. Indices continued to hold up overnight. My plan is to make my naked puts into credit spread and reduce my bear calls so my risk is reduced and balanced. I am heavy on bear calls from the margin standpoint. I bought back couple Oct 2 puts back for profit and left the long puts to cover the other naked puts in Oct 4. I am not sure how well it would really reduce margin if there is a big drop.
It was no rage change from FOMC. SPX closed at 1990, around yesterday's closing after pushing up to 2020. Many of my puts spreads exit orders were filled. I added couple Oct 3,4 bear calls CS near the high to help finance part of my puts exits.
Overall, it was a big day for nothing in terms of price. The high was rejected initially. I would wait to see how market would interpret FOMC in next couple days. Are we going to see the retest of the August low with the budget fight looming? I would stay light in size and bring my leverage below 3. It's at 3.8 today.
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