Indexes gave back their gains from yesterday with continued falling crude oil prices. SPX and RUT closed down 3.4 and 5.6% respectively recovered a half of their earlier losses. Overall the market is very resilient consider that crude has dropped near 10% dragging energy sector down. RUT is firmly back into its prior balance area while SPX is still holding its lower part of current balance area. A narrow B band may be building a base for another leg up of SPX.
Made 14 trades today. Rolled over all ITM expiring calls thanks to the pull back today. Left some premiums on the table due to overslept this morning. I also rolled some SPY, IWM and RUT calls to lock in profits and raise strikes. I had to use more ratio hedges to add defensive puts. Had to use one Risk Reversal to buy 2 calls for next week which increased the exposure fees and put margins to the put side. I don't want to use this tactic unless no other choices. I prefer to use the put position to collect some premiums on rollovers and use part of the collection to fund my hedges.
Neg liq goes up and down with indices due to these ITM positions. Margins are the same way. Margin ratio is back to 53% for now. All the waiting for FED will be end by tomorrow afternoon. Market appears no fear so far. It refuse to go down then it is likely to go up. They are waiting for tax cut and infrastructure spending proposals.
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