The Dec NFP came out 151K vs 189K expected. Market wasn't too excited until RTH started. The selling accelerated in the afternoon. ES/SPX and RUT lost 1.8 and 2.8% respectively. No matter what the NFP number is the market could interpret it as a bad news. The bears would sell it if the number is better. Because it could mean FED would be more likely to raise the rate. It the number is bad then the fear of recession would take over.
I had 23 orders filled today. Most of them were closing call orders in the AM. My Feb 1, SPY 185 puts were closed with 1c. When selling continued after 1pm I started to put in more put orders trying fill my march 1-5 spots. I got a little more than what I wished for. I am glad I held couple SPY and SPX puts orders without releasing them. Later afternoon when I saw Wednesday's lows were threatened I started to sell ratio credit spreads in 1:2 long to short puts to hedge my margins. This method has worked so far in a none crash style selling this year.
My net liq and buying power ratio stayed above 50% with these hedging positions. Leverage went up to 48. VAR and ES are above 70K which is bit too high. I will take off some short puts early next week.
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