Friday, March 23, 2018

The Selloff On Trade War With China 3-22-18

The news of that the US hit China with a $60 billion tariffs made the market nervous. It was an orderly pullback until the last hour. The bottom just fell out.  Most of the major indexes closed down 2.5%. It may be the starting of retest Feb lows.

Made 13 trades. I sold some late April and early May bull put spreads for my clients. Also tried to buy puts in IWM when it was legging the other majors. I wasn't patient enough waiting for it to double. I didn't follow my pre-market plan to reverse my SPX 2750 from bull put to bear call. My fear of being wrong or wanting a better price caused a loss of opportunity. I will do it on a pop tomorrow.

Net liq increased 2K limited by these ITM bull puts. Margin ratio is above 60% at least for tomorrow. Will continue to hedge the put side.

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