SPX experienced a morning sell off of near 0.8%. In the mean time RUT held well above water during the SPX drop. That was a early indication that SPX won't go down too far. However VIX and its short term product advanced roughly 8%, above 15 even as SPX was recovering back to -0.15%. RUT advanced 0.7% and RVN also moved up more than 1%. The fear of North Korea tension to escalate keeps market on edge. The divergence continues. Earning session is upon us again. So market may have another leg up baring from geopolitical events.
Made 9 trades today. I made 7 SPX late May bull put spreads for my self and clients during the morning push down. I rolled another RUT ITM 1330 call from April 28 to May 26, 1340 to lock in some profit and reduce 1k margin. The 1380 near the money call for this week is threaten again as RUT closed above 1370 today.
Neg liq lost 9K as RUT raised 0.7%. Margin ratio is lowered to 40%. The challenge still lays into next week. I will start to buy call hedges for next week tomorrow.
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