Indices opened lower from yesterday's closing. Buyers stepped in at yesterday's low and defended the balance range. Then the rumor of Saudi and Russia might agreed to the production cut came out. Crude shoot up and most sectors turned green. ES/SPX formed a bullish engulfing broken yesterday's high and low. RUT didn't go that far. Overall the pair are still in their balance area but shifting towards the upside.
I was prepared to sell puts in the morning. My main hypotheses was after initial push then market would fall which played out in the morning. None of my put orders got filled since we didn't get a real break down. During the push up I switched to sell calls. I had seven orders filled for late May. 3 naked and 3 CS plus a 1:2 ratio hedge. Margin is to the calls again.
Risk factors are still inline. Margin ratio is still at 55%. I plan to hedge call side a little more tomorrow for positions of next couple weeks.
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