Market gaped down from overnight, partially may be caused by North Korea's nuclear test. Fed's Sept meeting is nearing again. Market is flexing mussels to Fed. I was estimating about 1-1.5% move during the first hour of the market. Then I expanded it to 1.5-2% around noon time. I thought the bullish sentiment won't change overnight I was wrong again. SPX and RUT closed down 2.4 - 3.2% respectively. This is only the first day of a big drop for the last 2 months. It's likely more to come. VIX was up 34% in one day. The next balance area for SPX is between 2110 to 2020. I need to map out some levels of engagement and patiently wait.
Made 17 orders across all of my accounts today. Luckily SPX 2170 bear calls ended out of money and expired worthless. I wasn't patient enough with my RUT bear calls. The 1235 could have been expired worthless but I rolled it out after first hr of trading. I did placed more credited hedges on put side as I planed last night. My puts are under pressure now. But I had equal protections in place which is a lot better than last August. I sold some end Oct bull put spreads based on my rules. I wasn't very aggressive. I wanted to save some firing power for next week. I need to unload some put hedging positions soon. Their value increased very fast with VIX above 15.
Risk profile is better now. Net liq increased 18K. Margin ratio is at 46% before the weekly expiration taking effect. I should be in a better position early next week. I need to intentionally to hold my plan and watch the levels to trade.
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