I was expecting some pulse or small pull back on the day before FOMC announcement. Instead DOW, SPX and NASDAQ made new highs. Luckily RUT didn't follow the suite. It may be next inline if market react positively with FOMC announcement. It appears that market is fully priced in a rate hike tomorrow and they just want to push it higher before the year end. The squeeze on my holdings may not be over soon. I will have to prepare for the worst.
Made 12 trades today. I rolled most of 12/16 long calls to 12/23 to extend my hedges. Also rolled out more deep ITM RUTs. Booked about 20K losses. I may take RUT 1400 short calls off before FOMC to reduce my risk and add it back when the crises is over. Some of my positions are moved out to late Jan and Feb.
Risk profile is still on board line. Gave back 3K of net liq despite a flat RUT. Is it due to my rollover to naked positions plus the 9.65% increase in SPX? Margin ratio is at 28%. I think IB calculates ratio between the Available Funds and Initial Margin which I have about 46% left. Things can change very quickly to the worse. I may have to use my 10K reserve in ET again.
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