The month and quarter end window dressing held the market up until the last hr of trading. RUT/IWM even closed in negative territory. I think the market sentiment is still showing a level of nervousness.
Made 11 trades today. The best part was that my client's RUT holdings of the week exited on both sides with minimum cost. I only had 4 trades which brought the margin to a sufficient level. No premiums were collected.
Net liq is close to 115K. But the initial margin is high on the put side. The margin ratio is below 30%. It should change with the weekend expiration. I have survived the 1st half of 2018. I have reversed 3 RUT and 1 SPX deep ITM bear calls. So far have exited 1.5 of RUT and 0.5 of SPX bear calls after reversing them to bull puts. My risk is a large scale market move in either direction. I may have to use the reversals and hedges to deal with them.
Friday, June 29, 2018
Thursday, June 28, 2018
Awaiting For The Next Shoe Drop 6-28-18
The majors tried to drop but ended higher on the news of less tough trade policy from the administration. The push up may be related to the month and quarter end window dressing. Both SPX and RUT held 2700 and 1630 key levels respectively. There may be more volatility when the tariffs start next week if no resolutions coming out before then.
Made 17 trades. Other than the filled exit orders I mainly established long put positions in ETFs in July monthly. It's based on my expectation of more vols coming if the trade war starts. I could be wrong. All of my rollings are done for this week. I need to add few more hedges tomorrow.
Net liq improved 1.6K to 113K. My margin ratio is down to 30%. I will work to bring it up tomorrow. I need to continue learning new ways to generate more profit.
Made 17 trades. Other than the filled exit orders I mainly established long put positions in ETFs in July monthly. It's based on my expectation of more vols coming if the trade war starts. I could be wrong. All of my rollings are done for this week. I need to add few more hedges tomorrow.
Net liq improved 1.6K to 113K. My margin ratio is down to 30%. I will work to bring it up tomorrow. I need to continue learning new ways to generate more profit.
Wednesday, June 27, 2018
The Selloff Continues 6-27-18
The majors reversed down around the noontime after pushing higher in the morning. Both SPY and QQQ formed a bearish engulfing daily bar but held at Monday's low. RUT/IWM broke below Monday's low. I guess the trade war fear effects continue showing the force. Shanghai index is barely holding 2800.
Made 13 trades. I rolled my RUT 1230 bear call and SPX 3100 bull put early in the day. I didn't expect such a reversal day. My last 100 shares of ACRX hit its target of $4.55. Sold a couple of bull put spreads for clients as the add-on. I don't want to be too aggressive. I couldn't tell how big the impact of the trade war will have. I bought hedges on SPX but not enough yet.
Net liq is unchanged. The margin ratio is at 45%. The pressure is at the puts side now. It caused more margin stress when I couldn't exit out the ITM bull puts for the last two weeks.
Made 13 trades. I rolled my RUT 1230 bear call and SPX 3100 bull put early in the day. I didn't expect such a reversal day. My last 100 shares of ACRX hit its target of $4.55. Sold a couple of bull put spreads for clients as the add-on. I don't want to be too aggressive. I couldn't tell how big the impact of the trade war will have. I bought hedges on SPX but not enough yet.
Net liq is unchanged. The margin ratio is at 45%. The pressure is at the puts side now. It caused more margin stress when I couldn't exit out the ITM bull puts for the last two weeks.
An Inside Day 6-26-18
The market took a break today. The majors traded inside the ranges of yesterday. There was no big news in the trade war front. It's a news driven market now. It could go either way depending on the news.
Made 19 trades today. Closed some bear calls in ETF and rolled most of this week's bull calls out as they recovered some from yesterday's selloff. I rolled out my SPX 2800 bull put out. I still have 1 RUT bear call and another SPX 3100 bull put ITM and must rollout before this Friday. Hedging puts have not added enough cushion for next week. I also bought some debit put spreads in the ETFs expecting a further pullback base on the technicals.
Net liq barely changed. The margin ratio is at 50% for now. The expiry liquidity warning sign is showing again.
Made 19 trades today. Closed some bear calls in ETF and rolled most of this week's bull calls out as they recovered some from yesterday's selloff. I rolled out my SPX 2800 bull put out. I still have 1 RUT bear call and another SPX 3100 bull put ITM and must rollout before this Friday. Hedging puts have not added enough cushion for next week. I also bought some debit put spreads in the ETFs expecting a further pullback base on the technicals.
Net liq barely changed. The margin ratio is at 50% for now. The expiry liquidity warning sign is showing again.
Monday, June 25, 2018
A 1% Down Day In 2 Months 6-25-18
The US index futures gapped down overnight following the selloff in Europe on the trade war concerns. All the majors closed down between 1.3 - 2.3% (QQQ) recovered partially from their lowest points. The selloff was in orderly fashion relatively speaking. MACDs are crossed down on daily charts. The selling may continue barring any news that may ease the trade tension.
Made 24 trades. I sold some late July and early Aug puts spreads for clients. Also, rolled out four of my ITM bear calls out and bull puts gaining a few points on each of them. I had to buy ratio hedges on the put side as vol increased. Made a mistake forgetting to separate an order to two different clients. It was a busy day. I didn't have time to deal with these directional ETFs. It could have been a good opportunity to buy some short-term puts for a quick profit. I will fix or repair the ETFs tomorrow. I do expect the market will stabilize a bit for now.
Net liq stayed above 111K. The gains were offset by losses with near Delta neutral positions. The margin ratio is at 52%. The leverage level is still elevated at 477.
Made 24 trades. I sold some late July and early Aug puts spreads for clients. Also, rolled out four of my ITM bear calls out and bull puts gaining a few points on each of them. I had to buy ratio hedges on the put side as vol increased. Made a mistake forgetting to separate an order to two different clients. It was a busy day. I didn't have time to deal with these directional ETFs. It could have been a good opportunity to buy some short-term puts for a quick profit. I will fix or repair the ETFs tomorrow. I do expect the market will stabilize a bit for now.
Net liq stayed above 111K. The gains were offset by losses with near Delta neutral positions. The margin ratio is at 52%. The leverage level is still elevated at 477.
Friday, June 22, 2018
A Day Of Rolling And Hedging 6-22-18
The Divergence continued in reversed tendency. DIA and SPX pushed higher while QQQ and RUT closed lower. The tech and small-cap came back to retest their breaking points. It appears in the process of establishing the ranges if they don't fall back to their lower balance areas.
Made 24 trades. It's a high number that I can remember. I couldn't pile off the two ITM bull puts in RUT 1695 and SPX 2800 so I had to roll them out. That delayed my timetable and put pressures on my put side. I had to roll long calls for this week based on my plan of letting the short calls decay to the last day. I spent a lot of time and energy to hedge my margins. The debit spreads didn't work well. I guess I have too many IMT positions that require higher margin. I bought both sides of them and they didn't reduce the margin much. I ended up to buy direct puts at the last half hour that solved my problem this weekend.
Net liq recovered 1K and backed above 112K. The margin ratio is low for this weekend. My available funds for Monday is only at 18K. But I can manage that after spending about $200 on hedging and rolling.
Made 24 trades. It's a high number that I can remember. I couldn't pile off the two ITM bull puts in RUT 1695 and SPX 2800 so I had to roll them out. That delayed my timetable and put pressures on my put side. I had to roll long calls for this week based on my plan of letting the short calls decay to the last day. I spent a lot of time and energy to hedge my margins. The debit spreads didn't work well. I guess I have too many IMT positions that require higher margin. I bought both sides of them and they didn't reduce the margin much. I ended up to buy direct puts at the last half hour that solved my problem this weekend.
Net liq recovered 1K and backed above 112K. The margin ratio is low for this weekend. My available funds for Monday is only at 18K. But I can manage that after spending about $200 on hedging and rolling.
A Decent Pullback 6-21-18
The futures reversed down on Europe's selloff. RUT and QQQ closed down 1%. It's not a trend change but a decent relief for my portfolio. It looks like a retest of the breakout points for RUT and QQQ so far. We may be able to tell if the retest is successful in next couple trading sessions.
Made 16 trades today. Sold some late July and early Aug bull puts spreads for clients. I added more three more hedges but still not enough. I split a RUT 1370 to both ITM put and call of late July. The margin is on the put side now. I may reverse it back if the market drop from here.
Net liq is back up to 111K. The leverage is still at 480 high points. The margin ratio is at 45% but I need to shore off for the weekend as usual.
Made 16 trades today. Sold some late July and early Aug bull puts spreads for clients. I added more three more hedges but still not enough. I split a RUT 1370 to both ITM put and call of late July. The margin is on the put side now. I may reverse it back if the market drop from here.
Net liq is back up to 111K. The leverage is still at 480 high points. The margin ratio is at 45% but I need to shore off for the weekend as usual.
Wednesday, June 20, 2018
The Fear Of Trade War Faded 6-20-18
The majors gapped up this morning forgetting the trade war worries. QQQ and IWM let the way up and both booked new ATHs. RUT relentlessly crossed 1700 mark. Its fib target is around 1725. S&P is playing catchup.
Made 14 trades. I continued to roll ITM ETFs and collect profits. I also split my RUT bull puts attempting to pile off my ITM puts.
Net liq suffered over 3k and below 108K now. I may have to rescue again before this weekend. The margin ratio is at 45%. The insufficient fund warning of expiry is off. I will have to buy more since I have one more bear call to roll before this Friday.
Made 14 trades. I continued to roll ITM ETFs and collect profits. I also split my RUT bull puts attempting to pile off my ITM puts.
Net liq suffered over 3k and below 108K now. I may have to rescue again before this weekend. The margin ratio is at 45%. The insufficient fund warning of expiry is off. I will have to buy more since I have one more bear call to roll before this Friday.
Tuesday, June 19, 2018
The Divergence Continues 6-19-18
Another overnight selloff in the US futures after Shanghai exchange lost 3%. All the majors gapped down 1% and VIX was up 15%. By the end of the day, the majors recovered more than a half of the losses except RUT even turned into green. The bulls are no fear. RUT is heading to 1700. My positions are under pressure again.
Made 15 trades. Sold some late July and early August SPX bull puts for clients. Made a mistake of not pause pending orders before opening. One of clients' SPY combo for RR was executed right at open. Rolled 3/4 ITM positions with premiums. I also reversed a QQQ call to next week's put spread expecting further volatility with the trade war tension. I may be wrong but the QQQ call is OTM and not much value left.
Net liq is barely above 111K. The margin ratio is at 44%. The warning sign is that the predicted liquidity will be in negative territory by the weekend expiry. I will have to buy more hedges than last week.
Made 15 trades. Sold some late July and early August SPX bull puts for clients. Made a mistake of not pause pending orders before opening. One of clients' SPY combo for RR was executed right at open. Rolled 3/4 ITM positions with premiums. I also reversed a QQQ call to next week's put spread expecting further volatility with the trade war tension. I may be wrong but the QQQ call is OTM and not much value left.
Net liq is barely above 111K. The margin ratio is at 44%. The warning sign is that the predicted liquidity will be in negative territory by the weekend expiry. I will have to buy more hedges than last week.
Monday, June 18, 2018
Divergence Between Large And Small Caps 6-18-18
The trade war between the US and China officially started last Friday. S&P futures dropped 0.5% before today's opening. The selloff was contained during the cash session. While DIA and SPX were in the red territory RUT marched to another ATH of 1692. It closed up 0.5%. The escalation of tariffs between the two countries triggered another selloff tonight. Shanghai index is down 1.8% and the US index futures are down less than 1% so far.
Made 3 trades today. I missed the early selloff. The rest of the day was in recovery mode. VIX was still below 13. I split RUT 1740 ITM bull put to 1700 and 1720 hoping to pile if off further. No trade for clients. There may be better opportunities to sell bull puts tomorrow. I have some rolling to do as well.
Net liq suffered more than 3K and closed around 111K. The margin ratio is at 41%. The margin may switch to put side if the selloff materializes tomorrow.
Made 3 trades today. I missed the early selloff. The rest of the day was in recovery mode. VIX was still below 13. I split RUT 1740 ITM bull put to 1700 and 1720 hoping to pile if off further. No trade for clients. There may be better opportunities to sell bull puts tomorrow. I have some rolling to do as well.
Net liq suffered more than 3K and closed around 111K. The margin ratio is at 41%. The margin may switch to put side if the selloff materializes tomorrow.
Thursday, June 14, 2018
Holding Up On Triple Witch Day 6-14-18
Bulls shrug off the rate hike and nearing tariff announcement by the US tomorrow. Several selloff attempts were met with buyers. It's possible that the big money wanted to hold the market on this triple witch expiration day. However, the trend and sentiment are very strong.
Made 11 trades without getting much of premiums. I scratched 2 of RUT 1680 bear call ATM for my clients. Rolled a couple more of ETFs. Left clients' ETF call spreads for the decay of the short calls. I have an SPX 2800 bull put holding for tomorrow. I spent today's small profit hedging which is still not enough. I got a yellow line in post expiry excess. I have to bring it up by buying more hedges on both sides. I have only 3 hrs to do it before leaving for Yellow Stone.
Net liq went below 115K on today's 0.5% pop. The margin ratio is at 45%. My main task is to bring my margin back to the safe line tomorrow.
Made 11 trades without getting much of premiums. I scratched 2 of RUT 1680 bear call ATM for my clients. Rolled a couple more of ETFs. Left clients' ETF call spreads for the decay of the short calls. I have an SPX 2800 bull put holding for tomorrow. I spent today's small profit hedging which is still not enough. I got a yellow line in post expiry excess. I have to bring it up by buying more hedges on both sides. I have only 3 hrs to do it before leaving for Yellow Stone.
Net liq went below 115K on today's 0.5% pop. The margin ratio is at 45%. My main task is to bring my margin back to the safe line tomorrow.
Wednesday, June 13, 2018
The Waiting Game 6-11-18
It's going to be an eventful week. The headlines include the US - North Korea summit, FOMC and ECB policy announcements, possible development of US-China trade war. So the market is on hold waiting for the news. The majors closed in positive territory within the levels of last Friday. The price actions and sentiment are leaning towards bullish side. But Mr. Market can change with any news or event.
Made 4 trades today. Closed a RUT bear call with a small profit for a client to deleverage. I also split my RUT June 29, 1745 bull call to 1740 and 1650 expecting to pile off another quarter of the position. Added another SPY long call spread for next week.
Net liq is at 115K which is reduced by added bull put. The margin ratio is at 42% with the leverage elevating to 4.58.
Made 4 trades today. Closed a RUT bear call with a small profit for a client to deleverage. I also split my RUT June 29, 1745 bull call to 1740 and 1650 expecting to pile off another quarter of the position. Added another SPY long call spread for next week.
Net liq is at 115K which is reduced by added bull put. The margin ratio is at 42% with the leverage elevating to 4.58.
Rate Hike Priced In? 6-13-18
FOMC announced a rate hike of 0.25 as expected. It also indicated a possibility of two more hikes for this year. The market moved up and down as the other FOMC meetings. The majors closed down less than 0.5%. The complacency is clear there. Let's see how the market digest the news.
Made 9 trades. Rolled a couple of ITM bear calls of this week. Sold a set of RUT late July bull put spreads for clients. Locked and rolled the long call ETFs. I have a couple more left waiting for the short calls to decay further.
Net liq is up to 116K. The margin ratio is at 49%. It's the same hedging situation every week. I am looking for other configurations to reduce my ITM bear calls.
Made 9 trades. Rolled a couple of ITM bear calls of this week. Sold a set of RUT late July bull put spreads for clients. Locked and rolled the long call ETFs. I have a couple more left waiting for the short calls to decay further.
Net liq is up to 116K. The margin ratio is at 49%. It's the same hedging situation every week. I am looking for other configurations to reduce my ITM bear calls.
Tuesday, June 12, 2018
No Concerns Of Rate Hike? 6-12-18
The market continued pushing up. RUT/IWM made another ATH. I was expecting some kind of pulling back before the FOMC like many times before. To my surprise, it appears the market has no concern about the rate hike. We will see some rapid price movements right after the FOMC announcement. The uptrend may continue with a pause.
Made 13 trades today. Rolled more ITM ETSs with profits. Closed a couple of bear calls for my clients. Rolled up my SPX 2400 bear call with $180 premiums but no point gains. I wanted to split more bull puts but held them for tomorrow. I have more rolling to do before this Friday which I will work only a half day before my yellow stone trip.
Net liq stayed above 115K for now. The outlook doesn't look very good if the market continues to the upside in 2017 style for the rest of 2018. The margin ratio is at 47%. I will have to boost my hedges for the weekend as usual.
Made 13 trades today. Rolled more ITM ETSs with profits. Closed a couple of bear calls for my clients. Rolled up my SPX 2400 bear call with $180 premiums but no point gains. I wanted to split more bull puts but held them for tomorrow. I have more rolling to do before this Friday which I will work only a half day before my yellow stone trip.
Net liq stayed above 115K for now. The outlook doesn't look very good if the market continues to the upside in 2017 style for the rest of 2018. The margin ratio is at 47%. I will have to boost my hedges for the weekend as usual.
Friday, June 8, 2018
A Short Lived Pullback 6-8-18
It appeared the pullback might continue this morning from overnight and cash opening. Bulls stepped in by the mid-morning and grind the market up till closing. I guess the pros would like to take the market to a higher location before the FOMC next Wednesday.
Made 11 trades. I had to close or roll the 3 of ATM bear calls due to the continued grinding up. Spent about $150 to hedge my margins in the last two days since it had a yellow warning. Luckily one of my RUT 1640 bull put is expired worthless. I will try to pile off another one next week.
Net liq stayed in range. The margin ratio is fine for the weekend. I will prepare the more vol next week.
Made 11 trades. I had to close or roll the 3 of ATM bear calls due to the continued grinding up. Spent about $150 to hedge my margins in the last two days since it had a yellow warning. Luckily one of my RUT 1640 bull put is expired worthless. I will try to pile off another one next week.
Net liq stayed in range. The margin ratio is fine for the weekend. I will prepare the more vol next week.
Made A Big Order Mistake 6-7-18
A first pullback led by NASDAQ today since the small cap and tech sector breakout. A half percent of pullback felt big those days. Small caps and techs are pulling back a little on overbought condition. The strong trend is still in place so far.
Made 13 trades today. Bought a set of QQQ long call spread for clients. It was too early. I didn't buy it in my account for conserving margins. I bought a month-end SPY call spread without selling puts. I rolled all three of my deep ITM bear calls today. I made a big mistake in placing one of the orders. I was supposed to sell a put spread to fund the rollover. I sold the lower strike instead of buying it. It was 15x widespread so I could not buy it back. So I bought a small debit put around the lower strike to reduce the margin impact.
Net liq gained 3K on the pullback. The margin ratio is at 44%. The available funds are down to the yellow lines. I have to add more call hedges tomorrow.
Made 13 trades today. Bought a set of QQQ long call spread for clients. It was too early. I didn't buy it in my account for conserving margins. I bought a month-end SPY call spread without selling puts. I rolled all three of my deep ITM bear calls today. I made a big mistake in placing one of the orders. I was supposed to sell a put spread to fund the rollover. I sold the lower strike instead of buying it. It was 15x widespread so I could not buy it back. So I bought a small debit put around the lower strike to reduce the margin impact.
Net liq gained 3K on the pullback. The margin ratio is at 44%. The available funds are down to the yellow lines. I have to add more call hedges tomorrow.
Wednesday, June 6, 2018
None Stop Rally? 6-6-18
The raging bulls are none stoppable at this stage. It feels like early 2017 rally again. RUT/IWM made another leg up despite its RSI at 80. QQQ made its ATH while SPX is catching up with a near 1% gain. Is it the rush before the June FOMC meeting and trade war with China and Europe or just nobody cares?
Made 9 trades. I tried to buy call spreads in SPY and QQQ long calls. Only got QQQ and missed SPY. It turned up quickly after early weakness. Rolled the last set of SPY long calls of this week for clients. I need to be more decisive in adding positions. I recognized the market turning up but waited for pullbacks never happened. QQQ and SPY may have more room to go.
Net liq lost another 2.4K and down to 113.5K now. The margin ratio is also down to 38% while the leverage is up to 4.66. The situation is tricky again.
Tuesday, June 5, 2018
RUT & NASDAQ Making New Highs 6-5-18
The bull can't be stopped for now. The early attempts of selling met with buyers. A turnaround Tuesday turned out to be a continued rally. Both RUT and NASDAQ recorded new ATHs. SPX closed at the high of the day indicating likely up movement tomorrow.
Made 13 trades today. I continued to lock and roll the ETF long calls. I tried to buy more of the call spreads but hesitated to spend too much money on it. Also, split my SPX 3150 to 2800 and 3100 attempting to pile off another bull put and lower my strikes.
Net liq got hit by 2K and down to 116K now. The margin ratio is at 41%. I plan to add more ETF call spreads on any weakness. QQQ and SPY may have more rooms to the upside.
Made 13 trades today. I continued to lock and roll the ETF long calls. I tried to buy more of the call spreads but hesitated to spend too much money on it. Also, split my SPX 3150 to 2800 and 3100 attempting to pile off another bull put and lower my strikes.
Net liq got hit by 2K and down to 116K now. The margin ratio is at 41%. I plan to add more ETF call spreads on any weakness. QQQ and SPY may have more rooms to the upside.
A Better Job Report 6-1-18
The NFP reported a better than expected (190K v.s 223K) job growth. The unemployment rate is down to 3.8%. The market responded to the news well. It recovered the losses of yesterday plus more. QQQ gained the most today. It may be heading to all-time high following the small caps. The trade tension is on the back burner for now.
Made 13 trades today. My two ITM bull puts are out now. I bought them back and sold a set of put spreads to offset the cost. I was lucky to exit my QQQ short call of 172 before it got in the money and exit my clients' SPY 274 short calls 4 cents away from touching it. Overall, it played out well today.
Net liq went below 120K with 1K decrease as the market popping up. Margin ratio is at 58% but it will reduce over the weekend. I will fix it next Monday.
Made 13 trades today. My two ITM bull puts are out now. I bought them back and sold a set of put spreads to offset the cost. I was lucky to exit my QQQ short call of 172 before it got in the money and exit my clients' SPY 274 short calls 4 cents away from touching it. Overall, it played out well today.
Net liq went below 120K with 1K decrease as the market popping up. Margin ratio is at 58% but it will reduce over the weekend. I will fix it next Monday.
Monday, June 4, 2018
The Rally Continues 6-4-18
The market followed through the rally on Friday's job report. NASDAQ/QQQ is closer to make another new all-time high while RUT/IWM continues recording new highs daily. SPX has a little more overhead rooms. It's more and more like a summer rally now.
Made 12 trades today. I rolled up most of this week's ITM ETFs with profits. Also reversed IWM bull puts to bull calls for my clients. I will try to do mine tomorrow. The rest of the trades were exit and hedge orders.
Net liq is unchanged. The margin ratio is at 43% after the weekend expirations. I am thinking to do more bull calls in ETF or even stocks to generate income.
Made 12 trades today. I rolled up most of this week's ITM ETFs with profits. Also reversed IWM bull puts to bull calls for my clients. I will try to do mine tomorrow. The rest of the trades were exit and hedge orders.
Net liq is unchanged. The margin ratio is at 43% after the weekend expirations. I am thinking to do more bull calls in ETF or even stocks to generate income.
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