Market followed Friday's down ticks with a small gap down today. Both SPX and RUT recovered some losses in the afternoon as buyers stepped in when the indexes near their range lows. SPX closed last week's gap below and bounced from there. RUT retested its prior range high for the third time and still holding. Is this going to be a lunch pad again or are they going to fall back to VPOC before Fed meeting by mid of this month? Listened to Mark Douglas's Trading Psychology audio book in Chinese over the weekend while installing laminate floor in Northlake. It made me think more about my trading practices. I have more work to do to my trading mindset and system. I will study more and summarize my learning.
Made 6 trades today. Most of them were to lock in profit and roll up my positions while the market was down. I decided to roll my positions more aggressively and further out on calendar date. I will use more naked puts to help roll over ITM positions. Then spend part of the premiums collected (20-50%?) to buy hedges. I was able to use some SPY gains on call side to fund that deep ITM position.
Net liq gained another 8K while I raised 20 points up in RUT ITM positions. Until I can exit some positions in these ITM calls my net liq is vulnerable on any up surges. Margin ratio is lowered due to expired hedges. I will buy more hedges tomorrow.
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