It was a week of revenge by bulls. Indices ramped up by at least 5%. I have been heavy on bear call side using Tyler's concept of "market won't crash up". Well, it was a melt up. Most of my bear calls are underwater. Some of them are near ITM by the end of the week. I will apply patient to my roll over decision and wait until 1-2 days before expiration to roll my positions. I have been rolling up my puts to collect more premiums.
This is my first week showing $3.9K profit since the last week of August. I have been monitoring my risk parameters closely. My goal is to bring my margin below 50% of my net liq value as Karen suggested. It's dangerously at 75% right now. I created a Risk Monitor sheet to watch my risk levels on a daily base. I am still debating and studying weather to use spreads, naked or a combination. DTR Trading blog has done some valuable studying which I am still reading.
My plan is to reduce my margin/net liq ratio to 50% next week. I will learn to use TOS to construct a risk profile of a 20% crash and 10% pop scenario.
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