The NFPR came out slightly below expectations but still adding over 160K jobs for Oct. Market responded to the report with positive opens. Until 2pm, sellers started showing up. It played out as a pump and dump day. SPX turned to red from +0.6% while RUT held a 0.6% gain giving up about 1%. VIX logged its 8th up day, setting a new record for number of continued up days. I made another attempt to buy VXX on early pull back but didn't get it. We may see VIX continue to surge as it has not reached last Aug high yet.
I made several bear call spreads to form IC for my Nov and early Dec positions during the up move. I need to watch out a possible V shape bounce after the Election day. I am still weak in planning during market's volatile movement. I tend to be more responsive and enter a trade in the heat moment. On my put hedge of SPY 203 long, I planed to hold it longer into the election day in case of the surprise sudden drop. During today's up thrust I was afraid of losing value so I entered another order at 50% profit target and it got filled during the down thrust in the last hour of trading. I altered my plan and lost the protection. It was a profitable trade but still a wrong trade. I had to enter another risk reversal one more week out at 193 but double the bear calls to collect some premiums. It increased too much of my risk on the bear call side. I may be threatened on the bear side if the market surges after the election. A lesson must be remembered.
Risk profile weakened due to the down side movement. Net liq decrease 1K to 197K while Initial M poped 11K to 86K. Margin ratio is down to 56% from 62% instead of my plan to increase the ratio. I have next two days to reduce my exposure and increase my ratio. I need to focus and stay disciplined to make it make it work. My target is to get the ratio to 65% or better before the election.
No comments:
Post a Comment