RUT Completed Retest Below 5-31-17

My anticipation for today's market action was up. Instead SPX, RUT and NDX reversed overnight gains in the early session. Especially NDX made a new high and fall back hard in the morning. RUT was down near 1%, reached the breaking point of last Wednesday. Then buyers stepped in to recover most of the lost at closing. The retest appears completed. SPX held up without attempting of any retest.

Made 14 trades today. My exit order for RUT 1390 was filled early. It was the 2nd relief for the last six month if I remember correctly. Sold some bull puts CS for July in both SPX and RUT during the morning pull back. I leg into QQQ with a July RR for a directional biased position. TSLA continues to make new highs. My strangle didn't get filled.

Net liq stayed about the same. I paid another 5K back to ET after exited the RUT 1390 bear call. Margin ratio is still above 50% but margin shifted to put side now. We may see a steady move up in early June after today's strong recovery. Bulls are still alive and well.

Back From Memorial Weekend 5-30-17

Market held up in range after the Memorial weekend. RUT closed down -0.77% while SPX is only down -0.12% staying in its new balance area 2410-ish. The longer it stays up here it's more likely it will push higher. RUT is back into 1380-1345 balance area for now. But its MACD is near turning up. It could be an retest of last Wednesday's drop and quick turn.

Made 14 trades today. Sold some mid July's put spreads during the down turn of RUT. I also rolled the last two of RUT 5-31 ITM bear calls and collected $340 premiums. Bought hedges in IWM and RUT. Tesla has been acting strong adding near 3% with another new high. I put back June 400 bear calls for a client with the new high at 335. There is still 17% cushion for 3 weeks. I may leg in another set for me tomorrow.

Net liq added 7.2K back with a 0.77% RUT p/b. Margin ratio is above 50% for now. I don't expect RUT will go down much further. But I do have enough room to pay 5K back to ET. It's likely there will be another RUT bear call exiting out before end of this week.

SPX ATH At 2415 5-25-17

Indices futures moved up overnight. SPX gaped over its last resistance area making new highs throughout the day. It closed above 2415, up 0.44%. On the other hand RUT lost most of its gains and closed flat. It even went negative for awhile. Crude oil fall down 5%. Let's see if this new high will hold or fall back quickly like last several times. VIX closed below 10 again.

Made 12 trades today. Rolled my last expiring call for this week and collected $120 in IBP. Bought couple RUT call hedges and sold RRs in SPY and IWM. Not much income was generated.

Net liq stay in the same range of 150K. Margin ratio is above 50%. The predicted liquidity for the weekend is in safe level. I will not be sitting at my desk tomorrow but will monitor the market on the way to DC.

5th Up Day 5-24-17

Indexes inched up on this 5th day in a row. SPX is fully recovered from last Wednesday's sell off closing up 0.24% while RUT had an inside day up 0.11%. It parked on top of its current balance area of 1385-1340. Fed minutes release announced a plan to reduce its 4 trillion balance sheet. It didn't cause much of market reaction. SPX is only a few point away from another new ATH. Would they do it tomorrow and leave with a record before the Memorial Day weekend? It's likely.

Made 7 trades today. I made 3 rollovers of ITM calls for this week and month end because we are leaving for DC on this Friday. I have a 1380 RUT ATM in IB personal account to roll by tomorrow. I won't be able to take a chance to watch it expire on Friday.

Net liq had a $700 gain surprisingly with the indexes up. None of my hedging calls get filled except an IWM RR. I will have to try again tomorrow. Margin ratio is up to 46%.

RUT Testing Gap Zone 5-23-17

Buyers were persistence today. RUT pushed into the gap zone left from the sell off of last Wednesday. There were several attempts of pushing it down but all met with buyers. It closed up 0.28%. SPX closed its gap and fully recovered from the sell off of last Wednesday. It may start another leg up before or after the Memorial weekend if no decisive push down from here.

Made 4 trades today. No premiums were collected. I only had hedges on both call and puts. It's frustrating with a single strategy when it's not the right fit.

Net liq eroded 3K. Margin ratio is at 37%. I need to get more call hedges in the next two days. I will try to get a little more cushions for this long weekend.

SPX Retest The Breaking Point 5-22-17

SPX nearly closed the gap from the break down of last Wednesday after another 0.5% recovery today. VIX is back in 10s range. It's critical to see if there is a new leg up after the gap is closed. RUT closed into its gap zone but left most of the gap unfilled. It may catch up quick or get knock on its head. Bulls are still in control so far.

Made 9 trades today. Sold couple RUT late June bear calls to form ICs for clients. All of my account activities were hedging and exiting puts. I reduced 2 IWM bear calls used to be ITM. No premium collection for me today.

Net liq gave back about 5K with 0.7% in RUT and 0.5% in SPX. Margin ratio is down to 31%. Margin is back to call side. I will buy calls to hedge it tomorrow.

A Day of Breather 5-18-17

Market took a breath today as expected after the big sell off yesterday. The early attempts of pushing lower met with buyers. There was no major news to drive bulls and bears. SPX and RUT closed up near 0.4%. Is the selling over yet? It may be depending on news development. So far both SPX and RUT are setting on their daily trend lines. MACDs are crossed down. The up trend is still in place.

Made 4 trades today. Three of them are BABA strangles. One exited of May and two added for June. It dropped 2% initially then closed up 0.6%. It was a very strong price action after ER today. My call side may be threatened.

Net liq had a small increase despite of an up day. It may be helped by these put decays. Margin is on the put side now. I will add hedges on both side tomorrow if there is no major swings in market.  

Sudden Drops 5-17-17

Index futures gaped down last night on Trump's issue with Comey and leaking secret. The gap down let to an accelerated sell off until closing. SPX and RUT ended down 2.7% - 1.8% respectively. It followed SPX and NASDAQ made their new highs during the day session.

Made 20 trades today. It was a good day for selling puts in SPX and RUT despite that I under estimated the percentage of the sell off. I was able to fill in some late June and early July spots for SPX. I rolled all three of my ITM positions for this week. Luckily closed the RUT 1400 call I just split up yesterday. I sold 4 put ratio hedges in RUT to protect put side and reduce fees. It may be a short lived pull back but it helped me greatly. I saved some resources for follow through p/b.

Net liq gained 20K with today's sell off. I quickly paid another 5K back to ET. I am still 37K in debt to ET. The recovery has taken much longer than I expected. Margin ratio closed above 100%. It's still on call side. I will buy couple more calls before this weekend.

SPX, Another New High 5-16-17

SPX made a small step up to touch 2405 of another new high. It closed at 2400, slightly down 0.07%. RUT recovered its intra day loss of 0.6% but IWM closed down 0.5% after cash closing. It may be related the news of Trump's fall out with Carmey regarding the investigation of Flynn. Index futures gaped down this evening with RUT and SPX down 1% - 0.5% respectively.

Made 5 trades today. Followed my plan to split RUT 1370 bear call into 1400 this week and 1390 two weeks' out. If I can exit 1400 this week then I gained 20 points from 1370 to 1390 with better chance to get out of it in two weeks. I closed IWM 141 bear call with the same split concept from yesterday. The other three were just hedging and exiting puts.

Net liq had no changes with both RUT and SPX being flat today. Margin is on the call side and above 60% ratio. I have to pay attention to the down side as tonight's gap down could spill into tomorrow.

SPX New High 5-15-17

SPX and NASDAQ made ATH again as crude oil popped 2.6% and monthly option expiration week began. RUT added 0.8% as well. RUT is not near making a new high but SPX make drag it up. This week may be a tough one for my portfolio. So many calls want to hold the market up and cash in. I also have some ITM positions need to rollover.

Made 9 trades today. Sold a CS of June 5 for a client and rolled a IWM ITM 139 call for me. The rest of them were hedges and exit puts. Another day without collecting premiums. I tried to split and roll up a RUT 1370 bear call but no fill. May try it again tomorrow.

Net liq lost 9.3K down to 145K. Margin ratio is above 60% after I bought 2 RUT calls to hedge it. I will use any pull back to roll my this week's ITM calls. Need to watch out ET's margins.

Another Small Down Day 5-12-17

It was an inside small down day for SPX and RUT. RUT closed down 0.5%, still siting on top of prior balance area. SPX is -0.12%, parked on 2390. It won't give up testing above 2400 for next week.

Made 5 trades. Bought 2 RUT OTM calls for next week and margin is on the put side now. Rolled one ITM 1340 call out and sold a late June RUT put spread for a client. Nothing to write home about it. Market has been marking time for its next move.

Net liq is back above 150K with today's 5.6K gain. Margin ratio is safe for this weekend and early next week. I tried to split 1370 call to 1390 and 1400 in an attempt to make one go out quicker but didn't get fill. Will make another try next week.

A Short Lived Pull Back 5-11-17

Indexes opened with a small gap down. The pull back continued for couple of hours into the RTH. RUT was down -1.3% to retest last week's low of 1380 then met with buyers. It closed down 0.68% recovering a half of it while SPX closed with -0.21%. MACD for RUT is right at crossing down point and the price is sit right on top of its prior balance area. It could go either way into the weekend and next week for the monthly expiration.

Made 8 trades today. Finally had a chance to sell some bull puts of late June in both SPX and RUT. Also sold June 3 TSLA puts to make strangles. The rest of trades were exit orders. I will buy calls to hedge for the weekend tomorrow.

Net liq gained 8.7K back. Margin ratio is above 50% for now.

Holding Up 5-10-17

It was a tag war for indices trading in a small range. CL inventory report boost crude oil up 3% which supported market through energy stocks. RUT closed up 0.6%, right at 1400 while SPX added 0.1% at 2399. SPX is likely to close above 2400 for the first time before the week end. Market has no fear now. VIX closed above 10 barely today. The complacency may still last for a while. The force usually strikes when people are not expecting it. When too many people crying for wolves they won't come out.

Made 3 small trades today. I closed my JNUG gold last portion with near 50% loss. Another lesson of not get excited with someone else's trade ideas and cut the loser quick. The other two trades were hedging and exit put. No money was collected. It has been this way for a long time now.

Net liq was down 6.8K. I may have to endure more pressure since RUT formed a bullish engulfing bar today. Although the engulfing pattern doesn't work out often based on my observation. Keep in mind it's a bull market.

Inched Up 5-9-17

SPX and RUT kept trying push up today. SPX reached 2403, another new ATH and fall back slightly. It wasn't a decisive break out but gained ground a step at time. RUT had buyers stepped in every time it broke down. Buyers are still in control however appear weaker. North Korea announced it would continue its nuclear test.

Made 8 trades today. TSLA popped 4.5% for no apparent news. I got back into the trade, sold June 3 $400 bear calls with about 25% distance. It's possible but not likely for TSLA to jump 25% in 5 weeks. I plan to take profit with about 60% collected premiums. There were not much opportunities in indices to sell since the vol is so low. I made an IC 2 of SPX on put side for my ET ITM calls. The rest of the orders were exiting positions.

Net liq got 1k increase. Margin ratio is fine at this point. Market is waiting for something to happen but no one seams know it.

A New High Made By SPX 5-8-17

The result of French election didn't spark a massive rally as the first run of the election. Instead European market closed in red for the day. US futures were muted as well. SPX briefly made 2401 of an ATH then fall back below the high but holding the range. It's still likely for SPX to reach 2315-2425 area if we get a follow through this week. RUT is diverging from SPX and Nasdaq. It closed down -0.4% recovered from a 0.8% loss earlier in the day.

Made 8 trades today. None of my bull puts were filled. Volatility is still very low. It closed below 10 for the first time in years. It may go even lower if the rally continues. Market has no fear. All of my orders were hedging and exiting put.

Net liq gained 7K paper money. Margin ratio is back to 50% after I bought 2 RUT OTM calls. Continue to hang in there without immediate  possibility of exiting any ITM bear calls.

New High Insight For SPX 5-5-17

The NFPR came out better than expected this morning. Futures didn't have much of an reaction as usual. I guess market is building energy while awaiting for the result of France election, like the break out of the first run of the election. SPX has held above that the area and ready to make a new high following the other major indexes. RUT on the other hand has fallen back from its ATH. It may try to make another run but has more room to go.

Only one trade today. Sold a strangle of TSLA for my client. That was it. I didn't make a same trade in my account trying to conserve my margin. I had to drive Alissa and her friends Marta so I didn't do much in the afternoon.

Net liq reduced by near 7K with RUT and SPX closed up 0.6%, 0.4% respectively. I may have to sustain another squeeze next week. Margin is ended on put side today.

Another None Impact FOMC 5-3-17

It's funny that indexes made bigger moves before FOMC than after it. RUT, SPX closed down 0.6% and 0.15% respectively. Usually it's the other way around.  Let's see how and if market will act after the big money digest more from the Fed announcement. June rate hike is expected.

Made 9 trades today. Rolled 2 RUT bear calls up and way during the morning drop. Rolled out SPX 2270 expiring this week in ET but still couldn't raise any point. Couple of my risk off bear call order got filled for clients. I will start to buy hedges on calls to prepare for this weekend.

Net liq recovered 6K. I may start to pay ET back in 5K incrementally if we don't have a surge tomorrow. Margin ratio is back to safe level for this week at least.

Awaiting for FOMC again 5-3-17

Market tested lower today while awaiting for FOMC announcement tomorrow. Although it's not expected a rate hike from this meeting but market will read Fed's language like reading tea leaves. Much anticipated AAPL earning report turned out to be disappointing after it made several ATH recently. It's was another buy on the rumor and sell on the news. RUT closed down -0.6% and SPX was up 0.1% at closing.

Made 4 trades today. Rolled a RUT 1160 deep ITM call and sold a June 30 RUT put CS. VIX is too low to get a good fill. Made couple ratio puts to protect my downside.

Net liq recovered yesterday's loss. Since my calls are all ITM so it's all at the mercy of the market. Margin ratio is back to normal. I will mainly focus on hedging tomorrow before FOMC. I won't sell for premiums before the FOMC announcement.

Monday's Trend? 5-1-17

Market moved up after closing down last Friday. Major indexes closed up 1% for April. SPX was the only one didn't make a ATH last month. It's holding a bull flag pattern right now. Maybe the earning reports of AAPL and FB this week will make it run up. RUT fall off its new high and gave back 1.2% last Friday. It closed back to last Feb's balance area. It went up 0.5% on a retrace attempt. Let's see if the retest of b/o area will bring sellers back.

Made 5 trades today. 3 put exit orders were filled plus couple of RR hedges. No premiums was collected. VIX closed a new low of 10.11. Last time it happened was in 2007 before the big financial storm. Is it any indication of a VIX jump?

Net liq got hit by 8K, giving back a large portion of last Friday's gain. It may only stand for about 2% more gain of RUT and SPX before I have to make another wire transfer. Margin ratio is OK for now. I will try to be more aggressive in rolling up my ITM positions for May.