Tuesday, November 1, 2016

VOL Is Up 11-1-16

On the day before FOMC it was expected to be a choppy, range bound market. Indices took a dive of more than 1%, then recovered about half before closing. VIX went up more than indices and parked at 18 now. I tried to buy some VXX but didn't get fill. FOMC tomorrow may push VIX around even more. I will try again.

Made 7 trades today. 3 of them were exiting positions. 2 were rollovers and 1 ratio hedge. I entered my first SPX Monday expiration trade for Nov 7, a day before expiration of 2050/2000 put spread. It wasn't a very good timing. VEGA risk is too high. For the most part I held off adding any new put positions to preserve my buying power. BABA will report its earnings tomorrow morning. It kept going down since I entered my 95/90 put spreads. I am a little uncomfortable but will stick to my plan of expiring or rolling.

Risk profile stays at a healthy level. Margin ratio is at 69%. I will try to reduce my positions further to make my margin ratio to about 80% before the Election day when and if I can.


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