The same pattern of buy on any dip played out again today. After opening dip buyers showed up. SPX made a new high of 2371 although closed only up 0.10%. RUT gained 0.93% aiming at another new high soon. My estimated target for RUT is 1410-1420 after Trump's congressional address if that spark another surge. The urgent question is what I am going to do to reduce my margin and increase my net liq:
1, I can buy more OTM calls to reduce margin with risk reversal, etc.
2. Take a loss on IWM and, or SPY bear calls to help net liq;
3. Wire in more funds;
4. Take off a less damaging RUT bear call. The highest RUT ITM call will cost $6.6k to buy back but I may not have any other choices if RUT continues to grind up into a new range.
Made 4 trades today. Rolled 2 out of 3 of expiring positions. Luckily they got filled during a morning pull back. The other two orders were put exit. I have a deep ITM 1310 to roll tomorrow. Tried to sell couple call spreads for clients but I would wait to do it if we get a new high on RUT.
Net liq got hit by 12K today. I have only 9K cushion left. I plan to wire another 10K in if RUT won't even take a breath tomorrow. Margin ration and funds lowered as well. I will buy more calls tomorrow.
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