It was the worst down week since the August mini crash. SPX and RUT lost 3.5 and 4.3% respectively. They may have further to go after Friday's LOD close and French terrorists attack after hour. This could be a 5-10% correction while the rate hike nearing.
It was a good week for me as most of my bear calls were unwinded and turned into profits. I closed most of bear calls with profit and closed out of the money puts in SPX, SPY and RUT. My short term scalps turned into problem again and I had to roll out most of them. Get to remember the rules and lessons. Despite the reduced sizes the risk factors remain high. It shifted to the put side with some naked positions. I tried to buy long puts to make them vertical spreads but wasn't successful as VIX kept raising. I bought one SPX 1790 put of next week in about $200 away for $60 instead of $20.
My plan is to reduce the put side risk. I should buy more long puts and close short puts even with loss to insure the portfolio stays in safe zone. I can sell more calls to cover the losses of puts. I will explore the margin impact if I switch my positions to ES which requires less margin. We could face some level of panic gap down due to the French terrorist event. I must be prepared but not panic.
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