Nothing can stop an raging bull. Market shrugged off lower 2nd Q GDP and BOJ inaction. After an attempt of sell off in the morning the same pattern of this week played out again. Buyers stepped in to fend off sellers. RUT made another new high of 1223.6. So far there has not been a clear rejection of high. There may be another attempt to the upside next week.
My story is the same: getting squeezed by relentless bulls. Made 20 trades today. Rollovers and buying new hedges are the main tasks. I tried to use risk reversal to reduce my cost of buying hedges. It basically is buying a hedge call and selling a put to finance it. I wonder why I didn't think of it before. Of course it involves risk of having too many naked put in case of a sudden reversal.
Risk profile looks safe for now. New liq fall some to $157K. Margin is at 46% after adding more calls. I collected less than a $1000 premiums this week. I survived this brutal week. The loss continued for the week. It may not be over yet unless we see a decent pull back next week. July ended with about $25K losses on the paper. The summer draw down into August. I need to watch out for a sudden pull back since August is traditionally a bad month for financial market.
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