Monday, November 9, 2015

The 1st 1% Down Day of the Month 11-9-15

It was a follow through of Friday's job report. Market sold off after open and accelerated until early afternoon. SPX and RUT were down more than 1.6% mid day. Daily MACD is about to cross to the down side. I started to sell wide put spreads early in the session. I pick some fairly close strikes like 2050, 2020 of SPX for this week and next week. I think I was driven by frustration and revenge for the last 5 weeks' up swing. I didn't even wait for the first 30 minutes to see the market direction.  I plan to exit out of these positions tomorrow or the day after. Get to recognize these emotions and stop acting upon it.

Collected 0.16% ($2360) premiums today. Risk parameters improved some. I reduced 1 call by roll 2 to 1. Margin is still on the call side. It may change soon if the market continue to move downwards. I have to avoid to open any positions for Dec since I am going to travel to China. I may sell some next week for January.


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