Indices held up well today. SPX closed up less than 0.5% but is firmly above its 200 SMA and right below Fib 78 RT from last Dec high to this Feb low. RUT crossed its 50 day SMA and ready to challenge Fib 62 RT. I would expect some pauls in these areas next week.
I had my first SPY assignment on the 203 naked bear call overnight. It was a surprise to me when I turn on my program this morning. I guess someone wanted that dividend and $1.6 price difference there. I didn't know trade could access assignment while market is closed. Now I am holding 400 share of SPY short and an extra $80K cash on hand. I will try to buy them back when we get a decent pull back. My hands were tight on the short squeezes since my margin is low. I sold one set of SPX May 1 2160 bear calls. Unless SPX make a new high I will be safe. I bought 2 more RUT calls of next week to get my margin up a little.
Risk factors worsened with the SPY assignment and the leverage is up to 100 for the first time. I get to watch out on both side since I have some naked puts from rollover and free margin.
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