Indices futures dropped on Sunday night following the failed oil production freeze meeting among oil producing countries. My expectation was that Monday was going to be a down day with a fairly large gap. My portfolio would get some relief for a change. Of course the counter commonsense would happen on wall street any time. European market took ES back to its range and closed the gap before the US open. Then the correlation between equity and crude were totally broken. US indices broke to the upside and back to the high of recent balance area.
I had to change my plan from selling puts to hedging my bear calls and reduce margin. I also sold couple couple more call spreads expecting the squeeze may not go forever. I will continue to buy hedges tomorrow.
After last week's hedging positions expired risk factors went into bad shape. Net liq went down 32K. Margin ratio is reduced to 24.5%, the lowest in several months. My priority now is to bring the risk factors back to normal.
No comments:
Post a Comment